ITS GDP IS just 12.5% the size of India's, but the troubles from the unrest in Bangladesh with the resignation and flight of former Prime Minister Sheikh Hasina could still impact the Indian economy.
An interim government has been formed headed by Nobel Laureate and microcredit pioneer Muhammad Yunus, but Indian policymakers and businesses are awaiting further signs of stability and are keeping their fingers crossed about the fallout of the turmoil. The situation is still fluid, but Finance Minister Nirmala Sitharaman noted that while India's garments and textiles sector was facing some uncertainty, it was too early to say what the overall impact on the economy would be. Experts believe that exports, trade ties, infrastructure projects, and investments by some Indian firms could be impacted.
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