Indian Businesses, Tourism Hit as Trade with Bangladesh Falls

At a recent meeting of the Free School Street Traders Association, local traders expressed concerns that the ongoing "emergency" in Bangladesh was forcing many businesses to close, according to Telegraph India. In areas such as Free School Street, Marquis Street, and surrounding neighborhoods, hotels and guest houses are suffering with occupancy rates dropping below 5%.

One hotel owner in Chowringhee Lane, who invested ₹30 lakh to lease his property, shared his distress, explaining he could not afford the ₹1.17 lakh monthly rent without Bangladeshi guests. "I'm on the brink of bankruptcy," he said, reflecting the situation of many other small-scale traders who have invested heavily in their businesses.

Hyder Ali Khan, General Secretary of the association, noted that larger hotels might endure the downturn temporarily, but smaller establishments with just three or four rooms are on the edge of collapse. Many traders have mortgaged assets or taken out high-interest loans and can no longer cover their mounting losses.

The association, which includes over 150 members such as hoteliers, currency exchangers, and travel operators, is calling for immediate intervention from the Indian government to resolve the visa issue and restore people-to-people ties between India and Bangladesh.

Another group, the Marquis Street Free School Street Welfare Society, echoed these concerns in a recent meeting, urging both Indian governments to treat the visa issue with urgency due to its direct impact on livelihoods. Anil Punjabi, a member of the Travel Agents Federation of India, suggested launching a signature campaign on both sides of the border to pressure governments into action.

The tourism sector is also being severely affected, with fewer flights between Kolkata and Dhaka and a reduction in bus services. A transport operator shared that the sharp decline in passengers had forced him to cut staff salaries on both sides of the border.

The economic ripple effect of the strained trade relations is felt beyond Kolkata. Fuad Halim, a doctor and CPM leader, pointed out that India's exports to Bangladesh, valued at $13.8 billion in 2022, rely on bilateral trade. Goods such as cotton from India are processed in Bangladesh before being sold globally, meaning that disruption in trade harms both countries' economies.

Additionally, Sikkim's tourism industry, which heavily relies on Bangladeshi tourists, is also facing a serious setback. The recent ban on Bangladeshi visitors traveling through the Siliguri corridor has worsened the situation, as reported by NorthEast Live TV.