India- Bangladesh business brisk: Tourism suffers in both countries

Bangladesh-India businesses have progressed well during the last six months despite political tension between two countries, according to the data of Bangladesh Bank (BB), National Board of Revenue (NBR) and Export Promotion Bureau (EPB).

However, the tourism sector of both counties that suffered heavily during same period will get a boost, provided policy makers of two both counties ease and speed up the visa process, sources in Dhaka, Kolkata, New Delhi and Mumbai said.  

Bangladesh and India relations are going through a transition period with both neighboring countries showing brisk business during the last six months, but restricting visas of both citizens since ouster of former Prime Minister of Sheikh Hasina through a mass protests on August 5, 2024, sources in Dhaka, Kolkata, New Delhi, Agartala and Mumbai missions said.

The  number of Indian tourists also came down during the last six months. Though Bangladesh missions in India have not updated the number of Indian tourists in Bangladesh during the last six months or several years, the India government updated the data of international tourists on a regular basis, sources said.

Sources said the political tension between two countries will have a reciprocal impact on the issuing of visas on the citizens of both counties.

Sources in Bangladesh Tourism Board and Bangladesh Parjatan Corporation said India’s tourists’ share in Bangladesh inbound tourism constitutes a major share—sometimes 60—75 per cent of total inbound tourism.

Members of Tours operators association of Bangladesh (TOAB) said that political tension and uncertainty certainty hit their business last year and yet to get momentum.

Meanwhile, Bangladesh’s tourist arrivals in India nosedived during the month of November 2024 as India tightened visa process on security and strategic grounds, sources in Dhaka, New Delhi, Kolkata, Mumbai, Agartala and Chennai said.

According to the India Tourism Board, USA retained the top position in terms of tourist arrivals in India during the month of November 2024 with 20.44 per cent, followed by UK with 10.92 per cent, Bangladesh with 9.71 per cent , Australia with 6.41 per cent and Canada with 6.22 per cent, 2024.

However, Bangladesh still retained top position in terms of tourist arrivals in India during January-November period with 18.96 per cent, followed by USA with 17.39 per cent, UK with 10.14 per cent, Canada with 4.6 per cent and Australia with 4.59 per cent, according to the Monthly Tourism statics of Ministry of Tourism of India.

According to the data, a total of 1635913 Bangladeshis visited India during January—November period of 2024.

However, the during the month of November 2024, a total of 92,012 Bangladeshis visited India.

Foreign tourist arrivals (FTAs) in November, 2024 were 9,47,610 as compared to 9,48,631 in November, 2023 and 10,92,440 in November, 2019 registering a growth of -0.1% and -13.3% with respect to 2023 and 2019 respectively.

FTAs during the period January-November, 2024 were 86,28,238 as compared to 84,19,014 in January-November 2023 and 97,03,957 in January-November, 2019 registering a growth of 2.5% and -11.1% with respect to 2023 and 2019 respectively.

Meanwhile, India’s exports to Bangladesh witnessed a robust growth in the concluded calendar year 2024, according to data of Bangladesh Bank, National Board of Revenue (NBR) and Export Promotion Bureau (EPB).

According to the National Board of Revenue, India exported cotton and textile related goods worth 13.00 billion US dollars to Bangladesh in 2024.  

Meanwhile, India’s exports to Bangladesh witnessed a robust growth in the concluded calendar year 2024, according to data of Bangladesh Bank, National Board of Revenue (NBR) and Export Promotion Bureau (EPB).

According to the National Board of Revenue, India exported cotton and textile related goods worth 13.00 billion US dollars to Bangladesh in 2024.  Bangladesh’s export –oriented ready-made garment (RMG) is heavily dependent on India raw materials like cotton, PSF, VSF, yarn, woven fabrics and knit fabrics. However, total export of India to Bangladesh will be higher than 13.00 billion US dollars, sources said.

Bangladesh exported goods worth 1.01 billion US dollars (11,09,113,570 US dollars) to India during July-January period of 2024-25 fiscal year, according to the data of the export promotion Bureau(EPB)        
Bangladesh’s ready-made garment (RMG) exports grew by 7.23% in 2024, reaching $38.48 billion, up from $35.89 billion in 2023, according to the Export Promotion Bureau (EPB). Despite a volatile political and economic landscape, the RMG sector demonstrated resilience, recording positive growth in ten out of twelve months, as reported by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The year started on a strong note, with monthly exports of $3.47 billion in January, $3.19 billion in February, and $3.06 billion in March. However, April witnessed a decline of 6.62%, dropping exports to $2.38 billion. The sector quickly rebounded in May with a 14.59% growth, reaching $3.5 billion, only to face another dip in June, declining by 10.48% to $2.97 billion.

From July onward, Bangladesh's garment exports demonstrated steady growth, overcoming challenges to sustain positive momentum throughout the remainder of the year. In July, manufacturers achieved export earnings of $3.18 billion, reflecting a 2.89% increase compared to the same period in the previous year.
In August, despite political turmoil and a massive popular uprising that led to the ousting of the Sheikh Hasina-led government, exports rose by 7.20%, reaching $3.32 billion. This resilience highlighted the industry's ability to navigate complex socio-political conditions.

The writer is a senior journalist