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India Bangladesh Trade

India's exports to Bangladesh reached US$ 10.58 billion in FY26, making Bangladesh India's eighth-largest export market.

Last updated: Oct, 2026

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

  • In FY26, Bangladesh ranks 8th in exports, and in imports ranks 48th. Major exports include petroleum products, minerals, cotton, vehicles, cereals, organic chemicals, and multiple other product categories.
  • The total trade turnover in FY26 touched US$ 12.36 billion.

Major exports from India to Bangladesh

  • India’s export to Bangladesh stood at US$ 10.58 billion in FY26 and US$ 11.46 billion in FY25.
  • India exported 5,804 commodities to Bangladesh in FY26.
  • Major principal commodities exported from India to Bangladesh included cotton yarn/fabrics/made-ups and handloom products (US$ 2.05 billion), followed by engineering goods (US$ 1.92 billion), petroleum products (US$ 807.86 million), organic and inorganic chemicals (US$ 668.02 million), rice (US$ 546.64 million), spices (US$ 328.46 million), mica, coal and other ores, minerals including processed minerals (US$ 308.31 million), and drugs and pharmaceuticals (US$ 301.92 million) during FY26.

Major imports by India from Bangladesh

  • India’s imports from Bangladesh stood at US$ 1.78 billion in FY26 and US$ 2.05 billion in FY25.
  • India imported 1,079 commodities from Bangladesh in FY26.
  • Major principal commodities imported by India from Bangladesh included textile yarn, fabrics and made-up articles (US$ 169.58 million), followed by fruits and vegetables (US$ 120.47 million), leather and leather products (US$ 113.37 million), artificial resins, plastic materials and related products (US$ 66.34 million), iron and steel (US$ 45.98 million), organic and inorganic chemicals (US$ 45.69 million), and transport equipment (US$ 42.21 million) during FY26.

Economic Relations and Investments

  • On April 13, 2026, India and Bangladesh reaffirmed their commitment to strengthening cooperation in the information and broadcasting sector by expanding collaboration between media and broadcasting institutions. Both countries also agreed to promote media exchanges and capacity-building programmes, including specialized training for Bangladeshi journalists under the Indian Technical and Economic Cooperation initiative.
  • Prime Minister Mr. Narendra Modi met Professor Muhammad Yunus, Chief Adviser of the interim government of Bangladesh, on the sidelines of the BIMSTEC Summit in Bangkok, reaffirming India’s support for a democratic, stable, peaceful, and inclusive Bangladesh. Emphasizing a people-centric and pragmatic approach, the Prime Minister highlighted the tangible benefits of bilateral cooperation while calling for the avoidance of rhetoric that could vitiate ties and stressing the need for strict border management to ensure security and stability.
  • 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.
  • 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

  • Bangladesh will import 180,000 tonnes of diesel from India’s state-owned Numaligarh Refinery Limited (NRL) by December this year at a cost of about US$ 119.13 million (Rs. ~990 crore), under a long-term bilateral supply arrangement. The decision was approved by Bangladesh’s Advisory Committee on Government Purchase at a meeting in Dhaka chaired by Finance Adviser Dr. Salehuddin Ahmed, with the state-run Bangladesh Petroleum Corporation (BPC) undertaking the imports through a mix of direct payments and bank financing.
  • On November 15, 2024, Union Minister for Power, Mr. Manohar Lal, alongside officials from Nepal and Bangladesh, inaugurated the first trilateral power transaction through the Indian grid, marking a historic moment in regional energy cooperation. This power flow, with an initial export of up to 40 MW, was a key outcome of the 2023 visit of Nepal's former Prime Minister, Mr. Pushpa Kamal Dahal ‘Prachanda,’ to India. A tripartite agreement between NTPC, Nepal Electricity Authority, and Bangladesh Power Development Board was signed in October 2024. The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector.
  • 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 Programme 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

India–Bangladesh ties today reflect a more mature and diversified partnership that goes well beyond conventional areas of engagement. While tourism, healthcare, and education continue to anchor people-centric cooperation, with Bangladesh remaining a key source of inbound tourists, bilateral collaboration is increasingly shaped by technology and sustainability-led priorities. Both countries are now focusing on newer domains such as climate resilience, environmental protection, cyber and digital security, space-based applications, clean and green energy solutions, nuclear science, and the blue economy.

Contacts

FAQs

India exports to Bangladesh are led by cotton yarn, fabrics and handloom products (US$ 2.05 billion), followed by engineering goods, petroleum products, organic chemicals, rice, spices, minerals, and pharmaceuticals. These sectors form the core of India Bangladesh trade and support Bangladesh's manufacturing and consumer markets.

India Bangladesh trade has continued to expand, with bilateral trade between India and Bangladesh reaching US$ 12.36 billion in FY26. Strong cross-border connectivity, growing economic cooperation, and discussions on a Comprehensive Economic Partnership Agreement (CEPA) are further strengthening long-term trade integration.

India Bangladesh trade relations are being driven by textiles, engineering, petroleum, chemicals, pharmaceuticals, agriculture, power, railways, and digital infrastructure. Cooperation in media, broadcasting, technology, and capacity building is also expanding the India Bangladesh economic partnership beyond merchandise trade.

Bangladesh offers significant trade opportunities between India and Bangladesh, particularly in textiles, industrial raw materials, engineering goods, pharmaceuticals, food products, and energy. Its expanding manufacturing base and geographic proximity make it one of India's most important export markets in South Asia.

The snapshot does not identify individual Indian states contributing the highest exports to Bangladesh. However, India exports to Bangladesh include a diversified basket of textiles, engineering goods, petroleum products, chemicals, agricultural products, and pharmaceuticals supplied through multiple border trade routes.

Border trade initiatives are strengthening India Bangladesh commerce through new land customs stations, integrated check posts, border haats, improved road and rail connectivity, multimodal transport, customs cooperation, and harmonized standards. These measures reduce logistics costs and facilitate smoother movement of goods across the border.

Future trade opportunities between India and Bangladesh are expected across engineering products, pharmaceuticals, processed food, specialty chemicals, railway equipment, energy products, digital solutions, and agricultural inputs. Expanding industrialization and closer economic cooperation are creating sustained demand in these sectors.

Infrastructure projects are strengthening India Bangladesh trade by improving rail connectivity, power transmission, border infrastructure, and multimodal logistics. Projects such as the Maitree Super Thermal Power Plant, cross-border railway cooperation, and regional power trade are improving supply-chain efficiency and regional connectivity.

The growth of India exports to Bangladesh is being supported by strong industrial demand, improved border infrastructure, local currency trade settlement, closer customs cooperation, and ongoing efforts towards a Comprehensive Economic Partnership Agreement (CEPA). These initiatives continue to strengthen the India Bangladesh economic partnership.

Indian businesses can strengthen their presence by leveraging proximity, building partnerships with Bangladeshi distributors, utilizing integrated border infrastructure, and targeting high-growth sectors such as textiles, engineering, pharmaceuticals, agriculture, energy, and digital services. Continued improvements in India Bangladesh trade relations are expected to create new long-term business opportunities.

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