India Still a Key Trade Partner for Bangladesh Despite China’s Growing Influence

India continues to play a significant role in Bangladesh’s trade, even though China has emerged as a major supplier in recent years. While Bangladesh’s import dependency on China has grown over the last six years, India remains a crucial trading partner—especially in the cotton sector.

Recent data reveals a shift in trade dynamics. In the financial year 2023-24, over 25% of Bangladesh’s imports came from China, up from a little over 20% six years ago. Chinese products have a strong presence in Bangladesh’s domestic market, but when it comes to exporting goods to Bangladesh, India holds steady ground.

One of the standout figures in this trade relationship is India’s cotton exports. In 2023-24, cotton made up 26% of India’s $9 billion exports to Bangladesh, a noticeable jump from 20.2% just a year ago. This shows an increasing reliance on Indian cotton despite an overall decline in trade volume.

On the export front, China’s share in Bangladesh’s outbound trade has been shrinking. It accounted for only 1.6% of Bangladesh’s exports in 2023-24, compared to 2.1% in 2018-19 before the pandemic. India, however, has seen its share grow—from 3.1% to 3.5% in the same period.

This trend suggests that India’s position in Bangladesh’s trade ecosystem remains strong, especially in critical commodity segments like cotton. While the rise in China’s share of imports can’t be overlooked, India’s balanced import-export ties with Bangladesh reflect long-standing trade resilience and mutual dependence.

As regional dynamics evolve, the India-Bangladesh trade relationship continues to adapt—highlighting the importance of strategic partnerships and consistent supply chains in South Asia.