Revitalizing Commerce: India-Bangladesh Trade Insights

In the vibrant landscape of international trade, few partnerships stand as a testament to shared history and mutual benefit as that between Bangladesh and India. Beyond strategic alliances, the relationship between these two nations is deeply rooted in commonalities of language, culture, and trust. Let's explore the dynamics of the Bangladesh-India trade partnership.

Historical Foundations of Bangladesh-India Trade

Bangladesh and India's trade history is richly woven into the tapestry of diplomatic relations. Since India was among the first countries to recognize and establish ties with Bangladesh in 1971, the foundation of their bilateral relationship is built on principles of equality, sovereignty, and understanding. This historical context lays the groundwork for the robust trade relations witnessed today.

India holds a significant position in Bangladesh's trade landscape, being its largest trading partner in the subcontinent. In FY23, the total trade turnover between the two nations reached an impressive US$ 14.22 billion, reflecting the depth of their economic engagement. This substantial figure underscores the importance of the Bangladesh-India trade corridor.

Economic Relations

The economic relations between Bangladesh and India go beyond mere trade statistics. Bangladesh has emerged as one of India's major development partners, showcasing the mutually beneficial trajectory of their ties. Both nations are poised to elevate their partnership further through the Comprehensive Economic Partnership Agreement (CEPA), fostering trade and creating new avenues for economic growth.

Key Developments 

Recent initiatives like the inauguration of the Swadhinata Sarak and the joint launch of the Maitree Thermal Power project exemplify the commitment to strengthening connectivity and energy security. Additionally, settling a part of bilateral trade transactions in their own currencies, Rupee and Taka, highlights the innovative approaches taken to enhance economic cooperation.

A Glimpse into the Future

The state visit of Prime Minister Sheikh Hasina in September 2022 marked a pivotal moment, leading to the signing of crucial MoUs and Agreements. These agreements, spanning water resources, railways, technology, broadcasting, and judicial cooperation, lay the groundwork for future collaborations.

Exports from India to Bangladesh

India's exports to Bangladesh paint a picture of a diverse and dynamic trade relationship. In the fiscal year FY23, the export landscape witnessed transactions amounting to an impressive US$ 12.20 billion. This substantial figure is a testament to the multifaceted nature of the commodities exchanged between the two nations.

Key Exports and Quantities

1. Cotton Yarn (US$ 1.02 billion): India's textile prowess shines through as cotton yarn emerges as a major export item. This commodity, valued at over a billion dollars, contributes significantly to the trade flow.
2. Petroleum Products (US$ 816 million): The energy sector plays a crucial role in exports, with petroleum products being a substantial component. This category, valued at over US$ 800 million, underlines the strategic cooperation in the energy domain.
3. Other Cereals (US$ 556 million): The export basket includes various cereals, contributing to the economic ties. The value of other cereals in exports stood at US$ 556 million, showcasing the diversity of traded goods.
4. Cotton Fabrics, Made-ups, etc. (US$ 541 million): The textile trade extends beyond yarn, with a significant contribution from cotton fabrics and related products. This category, valued at US$ 541 million, reinforces the textile synergy.

The momentum in exports remains robust, with figures for April-May 2023 standing at US$ 1.67 billion. This continuous flow of goods underscores the resilience and sustainability of the Bangladesh-India trade corridor.

Imports by India from Bangladesh

India's imports from Bangladesh exemplify a mutually beneficial exchange, with both nations contributing to the intricate web of economic collaboration. In FY23, India imported commodities worth US$ 2.02 billion from its neighbor, showcasing the depth and diversity of their trade engagement.

Key Imports and Quantities

1. RMG Cotton (US$ 510 million): Readymade Garments (RMG) cotton is a significant import item, valued at US$ 510 million. This underscores the vibrant textile trade, where both countries actively participate.
2. Cotton Fabrics, Made-ups, etc. (US$ 153 million): The textile synergy extends to imports, with cotton fabrics and related products valued at US$ 153 million. This reciprocal trade in textiles solidifies the symbiotic relationship.
3. RMG Manmade Fibres (US$ 142 million): Readymade Garments made from manmade fibers contribute substantially, with a value of US$ 142 million. This category reflects the evolving dynamics in the textile and garment industry.
4. Spices (US$ 125 million): The culinary exchange is prominent, with India importing spices valued at US$ 125 million. This reflects the rich cultural ties that extend beyond economic transactions.
5. Jute (US$ 103 million): Jute, a traditional and versatile fiber, finds a prominent place in imports, with a value of US$ 103 million. This trade item underscores the historical and cultural connection between the two nations.

The figures for April-May 2023 indicate sustained momentum, with imports standing at US$ 278 million. This ongoing collaboration underscores the resilience and adaptability inherent in the economic ties between India and Bangladesh.

A Roadmap for Growth

As Bangladesh and India march forward, the multi-dimensional cooperation between them continues to evolve. From traditional sectors like tourism and education to cutting-edge fields like space technology and cyber security, the roadmap for growth is expansive. The Bangladesh-India trade corridor is not just a transactional alliance; it's a strategic partnership poised to unlock new economic vistas and foster enduring collaboration.

Explore the limitless possibilities of Bangladesh-India trade on the Export Portal, where opportunities meet excellence.