India Bangladesh Trade
Bangladesh is India’s biggest trading partner in the subcontinent and India is the second biggest export partner accounting for 12% of the total exports to Bangladesh.
Introduction
India and Bangladesh share bonds of history, language, culture, and a multitude of other commonalities. The relationship between the two nations goes far beyond a strategic partnership. India was one of the first countries to recognize Bangladesh and establish diplomatic relations immediately after its independence in December 1971. The excellent bilateral ties reflect a strong partnership based on equality, trust, sovereignty, and understanding.
India-Bangladesh Trade
- Bangladesh is India’s biggest trading partner in the subcontinent and India is the second biggest export partner accounting for 12% of the total exports to Bangladesh.
- The total trade turnover in FY24 touched US$ 12.90 billion.
Major exported items from India to Bangladesh with amount & quantity
- India exported 5,620 commodities to Bangladesh in FY24.
- India’s export to Bangladesh stood at US$ 11.06 billion in FY24 and US$ 12.21 billion in FY23.
- Major principal commodities exported from India to Bangladesh include other commodities (US$ 436.71 million), followed by cotton yarn (US$ 354.60 billion), engineering goods (US$ 328.07 million), petroleum products (US$ 150.06 million), and organic and inorganic chemicals (US$ 107.12 million), in April to May FY25.
- Exports to Bangladesh during 2023-24 stood at US$ 11.06 billion and US$ 1.78 billion during April 2024 to May 2024.
- Major principal commodities exported from India to Bangladesh include, other commodities (US$ 2.39 billion) followed by engineering goods (US$ 2.19 billion), cotton yarn, fabrics, made-ups, handloom products etc. (US$ 1.86 billion), petroleum products (US$ 1.25 billion), and organic and inorganic chemicals (US$ 651.33 million), among others in April-March 2023-24.
Major imported items by India from Bangladesh with amount & quantity
- India imported 1,012 commodities from Bangladesh in FY24.
- India’s imports from Bangladesh stood at US$ 1.8 billion in FY24 and US$ 2.02 billion in FY23.
- Major principal commodities imported by India from Bangladesh include articles of apparel and clothing accessories knitted or crocheted and not knitted or crocheted (US$ 595.53 million), followed by other vegetable textile fibres; paper yarn and woven fabrics of paper yarn aircraft (US$ 217.51 million) spacecraft, and parts thereof (US$ 176.02 million), in FY24.
- Imports from Bangladesh during April 2024 stood at US$ 109.80 million.
- Major principal commodities imported by India from Bangladesh include articles of apparel and clothing accessories, not knitted or crocheted (US$ 22.59 million), followed other vegetable textile fibres; paper yarn and woven fabrics of paper yarn (US$ 15.62 million), in April 2024.
Economic Relations and Investments
- The Government has allowed export of 99,150 MT of onion to six neighbouring countries of Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka. Onion export prohibition has been imposed to ensure adequate domestic availability against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 as compared to previous year and increase demand in international market.
- The 15th meeting of the Joint Working Group on Trade (JWG) between India and Bangladesh took place on September 26th and 27th, 2023, in Dhaka, Bangladesh. The discussions covered a range of bilateral issues, including the elimination of port restrictions, preparations for the initiation of the Comprehensive Economic Partnership Agreement (CEPA), standard harmonization, mutual recognition of standards, the supply of essential commodities to Bangladesh, the enhancement of road and rail infrastructure, regional connectivity through multi-modal transportation, and the establishment/strengthening of infrastructure in Land Customs Stations/Integrated Check Posts, border haats, etc. On the trade front, India and Bangladesh have agreed to start the Comprehensive Economic Partnership Agreement (CEPA) at an early date. CEPA would provide a sound basis for substantial enhancement of trade and commercial partnership between the two countries, and it would also create new jobs, raise living standards, and provide wider social and economic opportunities in India and Bangladesh. The productive bilateral meeting concluded with both nations reiterating their commitment to deeper economic engagement, regional cooperation, and sustainable development.
- In April 2023, Bangladesh and India agreed to settle a part of the bilateral trade transactions in their own currencies-Rupee and Taka, to ease pressure on dollar holdings.
- NTPC marked it first overseas capacity addition by adding Unit-1 of the 1320 MW (2x660) Maitree Super Thermal Power Plant (MSTPP) located in Rampal, Mongla, Bagerhat, Bangladesh. The project was executed in collaboration with the Bangladesh-India Friendship Power Company Pvt Ltd. (BIFPCL), a foreign joint venture company of NTPC Ltd.
- Indian railways, under grant assistance from the Government of India, handed over 20 Broad Gauge (BG) diesel locomotives to Bangladesh, fulfilling an important commitment made during the visit of Hon’ble Prime Minister of Bangladesh Sheikh Hasina to India, in September 2022.
- India and Bangladesh engaged in discussions on various bilateral matters including the exploration of new land customs stations, streamlining port restrictions, advancing road and rail infrastructure, facilitating pre-arrival exchange of customs data, and deliberating on a bilateral agreement for customs cooperation during the 14th Joint Group of Customs (JGC) meeting in August 2023 in New Delhi.
Recent Trends & developments
Department of Administrative reforms & Public Grievances (DARPG) and Ministry of Public Administration, Government of Bangladesh agree on renewal of the MoU which envisages capacity building programs for 1500 officers from 2025-2030. The visit of the 4-member DARPG delegation to Bangladesh was undertaken on the invitation of the Bangladesh Ministry of Public Administration with focus on the mid-career capacity building programs in field administration for Bangladesh Civil Servants.
Ms. H.E. Sheikh Hasina, Prime Minister of the Government of the People’s Republic of Bangladesh, paid a state visit to India from September 5-8, 2022, at the invitation of the Prime Minister of India Mr. Narendra Modi. The following MoUs and Agreements were signed and exchanged during the visit:
- MoU between the Ministry of Jal Shakti, Government of India, and Ministry of Water Resources, Government of Bangladesh on the withdrawal of water by India and Bangladesh from Common Border River Kushiyara.
- MoU between the Ministry of Railways, Government of India, and the Ministry of Railways, Government of Bangladesh on the training of Bangladesh railway personnel in India.
- MoU between the Ministry of Railways, Government of India, and the Ministry of Railways, Government of Bangladesh on collaboration in IT systems such as FOIS and other IT applications for Bangladesh Railway.
- MoU on scientific and technological cooperation between the Council for Scientific & Industrial Research (CSIR), India, and the Council of Scientific & Industrial Research (BCSIR), Bangladesh.
- MoU on cooperation in the areas of space technology between NewSpace India Limited and Bangladesh Satellite Company Limited.
- MoU between Prasar Bharti and Bangladesh Television (BTV) on cooperation in broadcasting.
- MoU between the National Judicial Academy, India, and the Supreme Court of Bangladesh on Training and Capacity Building Program for Bangladesh Judicial Officers in India.
Prime Minister Mr. Narendra Modi had a bilateral meeting with Prime Minister of People's Republic of Bangladesh Ms. H.E. Sheikh Hasina, on the eve of the G-20 Leaders Summit from September 9-10, 2023. The two leaders discussed bilateral cooperation including political and security cooperation, border management, trade and connectivity, water resources, power and energy, development cooperation, cultural and people to people ties. The two leaders welcomed the exchange of following MoUs during the meeting for strengthening the bilateral cooperation:
- Memorandum of Understanding on Cooperation in Digital Payment mechanisms between National Payments Corporation of India (NPCI) and Bangladesh Bank.
- Memorandum of Understanding on renewal of the Cultural Exchange Program (CEP) between India and Bangladesh for 2023-2025.
- Memorandum of Understanding between Indian Council of Agricultural Research (ICAR) and Bangladesh Agriculture Research Council (BARC).
Conclusion
The multi-dimensional cooperation between the two countries ranges from traditional tourism, health, and education sectors to frontier technologies of nuclear science, space, and information technology. Bangladesh is the largest source of foreign tourists. The two countries are looking forward to collaborating in new areas of cooperation, such as the environment, climate change, cyber security, ICT, space technology, green energy, and the blue economy.
Contacts
- High Commission India, Bangladesh
Address: Plot No: 1-3, Park Road, Baridhara, Dhaka 1212
Telephone: 00880-2-55067647
Officials
Mr. Pranay Verma - High Commissioner
Contact: +880-2-55067310
Email: hc.dhaka@mea.gov.in
Mr. Pawan Badhe - Deputy High Commissioner
Contact: +880-2-55067312
Email: dhc.dhaka@mea.gov.in - Embassy of Bangladesh, India
Address: EP-39, S Radhakrishna Marg, Chanakyapuri, New Delhi, Delhi 110021
PABX: +91 11 2412 1391-94
FAX: (91-11)26878953
Email: mission.newdelhi@mofa.gov.bd
Officials
Mr. Md. Mustafizur Rahman (High Commissioner)
Mr. Md. Nural Islam (Deputy High Commissioner)
Mr. Iftekhar Uddin Shamim (Minister - Commerce)
Partners
