India Becomes Bangladesh Second-Largest Trading Partner

May 20, 2026

Overview

India has overtaken the United States to become Bangladesh’s second-largest trading partner. This is a big shift in South Asian trade. The latest data from the Bangladesh Bureau of Statistics (BBS) shows India’s share at 8.47% of Bangladesh’s total trade. The US is very close at 8.46%. China remains the top trading partner with over 21% share. India’s advantage comes from its long land border, which makes trade faster and cheaper.

India Moves Ahead of the United States

New trade data from the Bangladesh Bureau of Statistics (BBS) was released. The numbers are for the period up to February 2026. India now holds 8.47% of Bangladesh’s total external trade. This is worth about Tk 123.28 billion. The United States is just behind at 8.46%, which is roughly Tk 123.17 billion. The margin is very small. But the symbolic meaning is big. India has taken the second spot.

China Remains the Top Trading Partner

Even with India moving up, China is still number one. China accounts for nearly 21.21% of Bangladesh’s total trade. That is worth around Tk 308.79 billion. Bangladesh depends heavily on China for industrial goods. Major Chinese exports to Bangladesh include:

Industrial raw materials
Capital machinery
Electronics
Textile inputs
Chemicals
Consumer products

China also offers competitive prices and deferred payment options. This makes China a very attractive trade partner for Bangladesh.

Why India’s Trade Position Is Strengthening

India’s rise is not accidental. There are practical reasons for it. India shares a long land border with Bangladesh. This reduces transport time and freight costs. Trade is faster and often cheaper than dealing with faraway countries.

Bangladesh imports many essential goods from India. These include:

Rice
Onions
Sugar
Other food commodities
Cotton
Yarn
Industrial intermediate goods

Bangladesh’s textile and manufacturing sectors also rely on Indian raw materials. This helps keep production running smoothly.

Other Major Trading Partners

Bangladesh’s trade network is not just with India, China, and the US. Here are the other top partners:

Indonesia – Ranked fourth. Bangladesh mainly imports coal, edible oils, and industrial raw materials from Indonesia.
Brazil – Ranked fifth. Bangladesh imports soybeans, sugar, edible oils, and other agricultural commodities from Brazil.