The recent six-month prison sentence handed to former Bangladesh Prime Minister Sheikh Hasina by the Dhaka-based International Crimes Tribunal (ICT) on July 2, 2025, for contempt of court marks a pivotal moment in Bangladesh’s political landscape.
Hasina, who fled to India in August 2024 after her government’s ouster amid protests, leaves behind a complex legacy of fostering robust India-Bangladesh business ties. Her tenure significantly enhanced trade, investment, and connectivity, with ripple effects on Bengaluru’s thriving startup ecosystem.
As Bangladesh navigates political uncertainty under an interim government, YTC Ventures invites private equity (PE), venture capital (VC), banks, and innovators to partner via www.ytcventures.com to capitalize on cross-border opportunities in AI, fintech, and climate tech from Bengaluru, India’s tech capital.
Sheikh Hasina’s Six-Month Sentence: A Turning Point
On July 2, 2025, the ICT sentenced Hasina to six months in prison for contempt of court over a telephone conversation where she allegedly claimed a “license to kill” 227 people, referencing cases filed against her. Tried in absentia while in exile in Delhi, this marks her first legal conviction since resigning on August 5, 2024, following mass protests that led to 1,400 deaths and thousands of injuries.
The interim government, led by Nobel laureate Muhammad Yunus, is also pursuing charges against Hasina for crimes against humanity, signaling ongoing political turbulence.
This development raises questions about the future of India-Bangladesh relations, particularly in trade and investment, which flourished under Hasina’s leadership.
Hasina’s Impact on India-Bangladesh Business Ties
Sheikh Hasina’s 15-year tenure (2009–2024) transformed India-Bangladesh economic relations, making Bangladesh India’s largest trade partner in South Asia, with bilateral trade reaching $13 billion in 2023–24.
Her policies fostered a liberal investment regime, offering Indian businesses incentives like 100% profit repatriation and dedicated Special Economic Zones (SEZs) in Mongla and Mirsarai.
Indian investments in Bangladesh exceeded $3 billion, with companies like Adani Power and Reliance Industries expanding in energy and manufacturing.
Hasina’s push for infrastructure—12 highways, 21 bridges, and 27 energy projects, many backed by China—enhanced connectivity, benefiting Indian firms exporting to Northeast India and Southeast Asia. Discussions for a Free Trade Agreement (FTA) in 2023 promised a 172–297% increase in bilateral trade, though political instability has stalled progress.
Hasina’s vision of a “Digital Bangladesh” drove ICT access to 100% at the grassroots level, boosting Bangladesh’s 600,000-strong IT freelancing community and exports like industrial robots and refrigerators to India. Her government’s economic reforms led to an 8.1% GDP growth in 2019 and a 188% increase in economic size since 2009, positioning Bangladesh as a trillion-dollar economy target by 2030.
These achievements created a robust platform for Indian startups, particularly in Bengaluru, to collaborate with Bangladeshi firms in fintech, AI, and logistics.
Impact on Bengaluru’s Startup Ecosystem
Bengaluru, India’s Silicon Valley, has been a key beneficiary of strengthened India-Bangladesh ties. The city’s startup ecosystem, hosting over 7,000 startups and 26% of India’s AI patents, thrives on cross-border partnerships. Indian FMCG giants like Marico, with significant exposure to Bangladesh, have leveraged Bengaluru’s tech talent for digital transformation, enhancing supply chain efficiency. Hasina’s policies facilitated Bangladeshi startups’ access to Bengaluru’s tech hubs like Electronic City, fostering collaborations in fintech and e-commerce.
For instance, Bangalore-based Dunzo’s logistics tech inspired similar models in Bangladesh, supported by Hasina’s SEZ incentives.
The political uncertainty following Hasina’s exile poses challenges. The interim government’s pivot toward China, with Muhammad Yunus’s recent Beijing visit discussing the Teesta River project, could strain India-Bangladesh startup collaborations. However, Bengaluru’s cost-effective R&D and 1.5 million tech professionals offer a stable base for continued innovation.
YTC Ventures is capitalizing on this by developing AI-driven solutions, including FireTech and fintech platforms, to bridge markets in India and Bangladesh.
Bangladesh’s Startup Ecosystem: Status and Resilience
Bangladesh’s startup ecosystem has shown remarkable growth, with over 1,200 startups emerging annually and $989 million raised since 2013 across 298 investors. Despite a 42% funding drop to $72 million in 2023 due to global slowdowns, sectors like financial services ($49 million across 14 deals) and education remain strong.
Venture capital dominates, with $753 million invested since 2013, and late-stage deals averaging $9.5 million signal maturity. Hasina’s policies, including 100 SEZs and 28 high-tech parks, fueled this growth, aiming for 5 unicorns by 2025 and 50 by 2041. The interim government’s focus on economic stabilization and reforms offers hope, but political risks linger.
Bangladesh Investment in Bengaluru: By the Numbers
While Bangladesh’s direct investments in Bengaluru are modest, Indian firms have driven significant capital flows into Bangladesh, with Bengaluru as a tech conduit. Indian companies invested $3 billion in Bangladesh by 2018, with Bengaluru-based startups like Ola and Zoho exploring Bangladeshi markets. Conversely, Bangladeshi startups, backed by Hasina’s liberal policies, have collaborated with Bengaluru firms, with an estimated $50–100 million in joint ventures since 2018, particularly in fintech and logistics.
For example, Bangladesh’s bKash partnered with Bengaluru’s Razorpay for cross-border payment solutions, enhancing digital trade. India’s $8 billion Lines of Credit to Bangladesh for infrastructure indirectly bolstered Bengaluru’s tech ecosystem by enabling software exports.
YTC Ventures aims to amplify such partnerships, targeting $500 million in India-Bangladesh tech investments by 2030.
Investment Opportunities with YTC Ventures
The political shift in Bangladesh opens new opportunities for Bengaluru’s startup ecosystem. YTC Ventures invites PE, VC, banks, and innovators to partner via www.ytcventures.com to drive AI, fintech, and climate tech solutions. Key opportunities include:
- AI and Fintech: Develop cross-border payment platforms and AI-driven supply chain tools, leveraging Bengaluru’s tech talent.
- Climate Tech: Invest in FireTech solutions, inspired by the Madre Fire crisis, to address regional environmental challenges.
- High ROI: The $10–12 billion FireTech market and growing fintech sector promise strong returns.
- Global Reach: Bridge Bengaluru and Bangladesh to tap a 3-billion-person market.
Call to Action: Partner with YTC Ventures
Sheikh Hasina’s legacy of fostering India-Bangladesh business ties, despite her six-month sentence and exile, underscores the potential for cross-border innovation. Bengaluru’s startup ecosystem stands ready to lead, with YTC Ventures driving AI and fintech advancements.
Investors, innovators, and PhDs are urged to visit www.ytcventures.com to partner in building a resilient, tech-driven future for India and Bangladesh.
Contact: Send e-mail to investments@ytcventures.com or Whats app “INVEST” to +91-9380376419
YTC Ventures is committed to fostering innovation across borders. Stay tuned for updates on India-Bangladesh tech collaborations.
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