Bangladesh Protest: The political, social and economic crisis that Bangladesh is going through in the last few months has increased the concern of the entire world including India. This Muslim-majority country, which once carved its own liberal, relatively secular identity apart from Pakistan, is today in the news due to the rise of fundamentalism, social tension and allegations of increasing violence against minorities. After the ouster of Sheikh Hasina from power, political instability, weak law and order, huge decline in investment and lack of revenue have put Bangladesh’s economy in deep crisis.
Bangladesh in deep debt
The situation has become so bad that the country has to depend on loans and government expenditure is continuously increasing. According to available data, the total government debt of Bangladesh has increased by about 14 percent in the last one year and by June 2025 it is likely to increase to more than Tk 21 lakh crore, which includes both foreign and domestic debt.
According to the International Monetary Fund (IMF), Bangladesh’s external debt position has reached the medium risk level and the debt-to-export ratio has reached about 162 percent, which is considered well above the safe limit. If exports decline further, the country may be at risk of bankruptcy due to a serious financial crisis.
Why did this happen?
Due to this economic pressure, Bangladesh has had to decide to import 50 thousand tonnes of rice from India at concessional rates, which will cost it less than other countries and save crores of rupees. There has been trade relations between the two countries.
Although there has been some tension in India-Bangladesh relations after the formation of the new interim government, India has historically provided financial assistance, loans and support to Bangladesh in infrastructure development such as roads, bridges and power projects, which shows the importance of relations between the two countries even in the current crisis.
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