Bangladesh has been increasing its China dependence; data shows India still a major player

Despite lower trade, India still has significant share in Bangladesh's trade

Over a fourth of goods imported by Bangladesh were from China in 2023-24, compared with a little over 20 percent six years ago, according to a Moneycontrol analysis.

China lags India when it comes to imports of Bangladesh’s goods, but commodities from the East Asian nation dominate Bangladesh’s local market.

China’s share in Bangladesh’s exports has fallen over the last five years. The country accounted for 1.6 percent of Bangladesh’s exports in 2023-24, down from 2.1 percent prior to the pandemic (2018-19).

In contrast, India’s share has risen from 3.1 percent to 3.5 percent during this period.

Despite a lower share in Bangladesh’s imports than six years ago, the country’s reliance on cotton from India has increased. In 2023-24, 26 percent of India’s $9 billion exports to Bangladesh were in cotton compared with 20.2 percent a year ago.

India accounted for 30 percent of Bangladesh’s overall cotton imports during this period, up from 23 percent in 2018-19.

Data from India’s trade portal shows that textile, clothing and apparel still dominate exports from Bangladesh as well.

The sectors had a 56 percent share in India’s import of Bangladesh’s products compared with 57 percent in 2018-19.

India imported $1.8 billion worth of goods from Bangladesh in 2023-24, down from $2.01 billion a decade ago.

Last week, the government imposed new restrictions on imports from the neighbouring country, affecting over 40 percent of the trade.

The notification by the government curtailed land access to specific goods like readymade garments, which can only be imported via two sea ports.

Tensions between the countries have been rising ever since Bangladesh’s interim advisor Muhammad Yunus called India’s northeast as a landlocked region.