The political crisis that is emerging in Bangladesh may affect trade between India and Bangladesh, but Bangladesh will be hit harder. According to experts, the developments in the neighbouring country are bound to have an impact on bilateral trade. Let us tell you that India exports many goods, including cotton, machinery and food products, to Bangladesh. At the same time, it imports jute and fish.
If we look at the trade between India and Bangladesh in detail, as per the data available on ibef.org, Bangladesh is a major trading partner of India and the second largest export partner. In the financial year 2023-24, the total trade between the two countries was USD 14.22 billion.
A total of 6,052 items were exported from India to Bangladesh in FY23. This export figure was $12.20 billion, down from $16.15 billion in FY22. Talking about the goods from Bangladesh to India, 1,154 goods were imported in the financial year 2023-24. This was around $2.02 billion, while in the previous FY22 this figure was recorded at $1.97 billion.
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Major Commodities Shipped from India to Bangladesh (FY2023)
Cotton yarn ($1.02 billion)
Petroleum products ($816 million)
Grains ($556 million)
Cotton textiles and other coverings (US$541 million)
Organic and inorganic chemicals ($430 million)
Major goods entering India from Bangladesh (FY2023)
Cotton RMG ($510 million)
Ready-made cotton fabrics ($153 million)
RMG synthetic fiber ($142 million)
Spices ($125 million)
Jute ($103 million)
There has been cooperation here too
Bangladesh is also India’s largest trading partner in South Asia. India and Bangladesh have also continuously cooperated in the fields of energy, trade, basic infrastructure, connectivity and defence. Bilateral trade between India and Bangladesh has increased over the last decade. With this, Bangladesh has become India’s largest trading partner in South Asia. Bilateral trade between the two countries had reached $10.8 billion in 2020-21, which will reach $18 billion in the year 2021-22.
Wheat and cotton were shipped to Bangladesh.
Bangladesh is an important partner of India in the energy sector and imports around 2,000 MW of electricity from here. Apart from this, cotton and cotton waste rank high on the list of exported products from India to Bangladesh. In 2021-22, cotton and cotton waste worth over $164 million were exported. In the same year, India had exported wheat worth over $119 million to Bangladesh.
In the year 2021-22, India had exported rice worth over $610 million, sugar worth over $560 million and other cereals worth over $430 million. In addition, vegetables, fruits, spices and edible oils are also exported from India to Bangladesh.
Shoes, purses and bags imported from Bangladesh.
Bangladesh exports goods worth US$ 2 billion to India. India imports textiles, readymade garments and woven garments, jute and jute goods, leather goods especially shoes, bags and wallets etc. from Bangladesh. Apart from this, in recent years Bangladesh was emerging as the leading exporter of generic drugs and pharmaceutical products. India also imports pharmaceutical products and related raw materials from Bangladesh. India also imports spices and marine products like fish etc. from Bangladesh.
