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Bangladesh has emerged as the country with which India has the third-highest trade surplus, with the latter's exports to the former being significantly more than its imports.
Over a period of 20 months ending in November 2024, India's trade surplus with Bangladesh stood at $9.22 billion, according to data published by the Financial Times on Thursday.
During this period, India exported $11.07 billion worth of goods to Bangladesh, while its imports from the country were just $1.85 billion.
The data also highlights that Bangladesh is India's eighth-largest export destination, reflecting the former's importance in the latter's global trade structure.
Bangladesh is one of the South Asian economies that has such a high trade surplus with India. On the other hand, India is the second-largest trade partner of Bangladesh after China.
Economists say Bangladesh could expand its exports to India by diversifying its export basket beyond readymade garment. They also suggest import diversification to reduce dependence on India.
"Commodity imports should be diversified. Power and energy imports from India have tilted trade in favour of India," said Dr M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh.
"There should be negotiations to remove non-tariff barriers that restrict Bangladesh's exports," he said, emphasising the diversification of Bangladeshi products and making them competitive to reduce the trade gap.
Bangladesh's imports from India cover a wide range of industrial, consumer, and agricultural products, including cotton and man-made staple fibres, mineral fuels, mineral oils, and nuclear reactors.
Besides, it imports boilers, electrical equipment, industrial machinery, edible vegetables, cereals, coffee, tea, organic chemicals, tanning or dyeing extracts, sugar, confectioneries, vehicles (excluding railway), rubber, paper, and sound-recording equipment from the neighbouring country.
With Bangladesh set to graduate from its least developed country (LDC) status in 2026, economists say the country's trade ties with India are expected to evolve.
During dollar shortages, Bangladesh and India rolled out a landmark cross-border trade settlement mechanism involving the rupee and bypassing the US dollar in July last year.
The US remains India's largest export market, with shipments worth $77.5 billion during the period under review, followed by the UAE. With $35 billion, India also has the highest trade surplus with the US, followed by the Netherlands.