Causes :
1. 1. India's foreign direct investment (FDI) in
Bangladesh has declined in recent years, indicating a shift in its economic
priorities. According to official data, Indian FDI in Bangladesh decreased by
29% in the last fiscal year alone.
2. 2. The political
tensions and trade disputes between the two countries have strained bilateral
relations, leading to a reevaluation of India's engagement strategies. Data
from trade statistics show a decrease in bilateral trade volume and an increase
in trade barriers over the past few years.
3. 3. India's
focus on enhancing ties with other South Asian nations like Nepal and Sri Lanka
has diverted attention and resources away from Bangladesh.
Effects:
The departure of India from Bangladesh is expected to have
multifaceted effects on both countries, as supported by data trends and
Bangladesh may witness a short-term slowdown in certain sectors heavily reliant
on Indian investments and aid, as demonstrated by a decline in FDI inflows. Politically,
Bangladesh may intensify efforts to strengthen ties with other regional powers
to fill the void left by India's exit, as evident in recent diplomatic
engagements with China and Japan.
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