India has narrowly overtaken the United States to emerge as Bangladesh’s second-largest trading partner, driven by shifting regional trade dynamics, lower freight costs, and a consistent domestic demand for essential food commodities and industrial raw materials.
According to the latest monthly foreign trade statistics released by the Bangladesh Bureau of Statistics (BBS), the United States—which had briefly secured the number-two spot in January—was marginalized to the third position in February.
BBS data indicates that India accounted for 8.47% of Bangladesh's total external trade (combined export and import volume), valued at Tk1,232.8 crore. The United States closely followed with an 8.46% market share, totaling Tk1,231.7 crore.
Meanwhile, China firmly retained its longstanding position as Bangladesh's largest trading partner, capturing 21.21% of total external trade, equivalent to Tk3,087.9 crore.
External trade share (as of February, source: BBS)
Country | Trade Share (%) | Value (in BDT) | Primary Trade Drivers |
China | 21.21% | Tk3,087.9 crore | Capital machinery, electronic parts, textile raw materials, chemicals |
India | 8.47% | Tk1,232.8 crore | Essential food items (onions, rice, sugar), raw cotton, yarn, intermediate goods |
United States | 8.46% | Tk1,231.7 crore | Readymade garments (RMG exports), agricultural produce, grains, LPG |
Trade experts and officials note that the thin margin between India and the US highlights fundamentally different economic linkages.
Bangladesh’s trade volume with the United States is overwhelmingly export-heavy, anchored by the American market's demand for readymade garments (RMG).
Conversely, the volume with regional neighbors like India and China is heavily import-dependent.
Imports from India remain vital for local market price stability and industrial supply chain continuity.
Due to geographical proximity and land-port connectivity, local industries rely on Indian raw cotton, yarn, and intermediate industrial products to keep manufacturing overheads low.
Furthermore, during periods of domestic supply shortfalls, Bangladesh relies on fast-tracked Indian cross-border shipments of food staples like rice, sugar, and onions.
Beyond the top three, Indonesia ranked as the fourth-largest trading partner, sustained by imports of coal, edible oils, and industrial raw materials.
Brazil stood fifth, commanding nearly 4.0% of total trade, driven primarily by agricultural commodities like soybeans and unrefined sugar.
Global shifts
The evolving trade ledger underscores Dhaka’s delicate balancing act among key international economic blocks:
The EU and the US remain the primary drivers of Bangladesh’s foreign exchange earnings.
While regional partners dominate the import ledger, the Western economies absorb the bulk of apparel exports, providing the hard currency reserves necessary to service external liabilities and balance trade deficits.
Beijing’s dominant 21.21% share reflects its position as the primary supplier of heavy capital machinery and raw inputs for the domestic manufacturing sector.
Competitive pricing structures and deferred-payment facilities continue to reinforce this bilateral reliance.
Although non-dominant in monthly retail trade tallies, macro-investments from partners like Russia remain tightly bound to long-term energy infrastructure, such as the Rooppur Nuclear Power Plant.
Analysts indicate that expanding trade here requires careful navigation of international transactional compliance to mitigate potential secondary sanction risks.
Trade officials project that the concentrations among China, India, and the US will likely remain dominant in the near term, reflecting Bangladesh's structural dependence on imported raw inputs to power its domestic export machinery.