Trade and commerce may often defy the ongoing trends.
Braving the hurdles; it could be baffling ... but in many quarters experts say the trade volumes between two South Asian neighbours - India and Bangladesh - have continued to grow.
On the other hand, the incumbent Yunus regime in Dhaka has tried to play Pakistan friendly. But with Islamabad reeling under its own problems heightened by economic crisis; there could not be much headway.
Bangladesh thus has reasons and compulsions to enlist as much benefits from India as it could.
Take for example; the sea transport might raise some costs but 'duty-free access' to India has kept Bangladeshi garments competitive in the market.
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| Indo-Bangla border near Tripura capital Agartala |
As it is due to multiple reasons, Bangladesh has been depending a lot of Indian assistance on energy and defence. The erstwhile Sheikh Hasina government since 2009 has been accused for being 'extra' India-leaning. This is half truth definitely.
We may call it a mix of gratitude and hardcore strategic diplomacy. The Awami League regime appreciated India's chaotic democracy to military-commanded Pakistan.
Moreover, for all practical purpose India is the 'big local dada' in the region.
The incumbent Bangladesh government may not agree. But a big sized economy such as India with three borders have helped it from time to time to tie over the crises.
Firstly; growth in Bangladesh was hit by a number of domestic issues, including a faltering economy, a depreciating currency, high inflation and socio-political turmoil after the collapse of the Sheikha Hasina government in August 2024.
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| Blogger in Dhaka: Sheikh Hasina regime |
However, closer studies will reveal that geography and the transportation system of Bangladesh --- with or without Yunus dispensation - had ensured a robust trade.
India is in more ways than one "a necessary trade partner" for Bangladesh because the two countries share a roughly 4,000-kilometer-long border.
As a matter of fact, India shares border with Bangladesh on three sides. Moreover, border ports such as like Benapole-Petrapole keep the cost of transport of bulk goods and raw materials low.
A lot of Bangladeshi factories need to import Indian intermediate goods such as machinery, packaging materials, and chemicals. This has helped Bangladesh in maintaining the average production of garments, leather, and agro-processing products.
There is also a claim that even the ban on trade in RMG products through land routes has had little impact.
In recent months, trade restrictions on Ready-Made Garment (RMG) products have been a significant issue, particularly regarding trade between India and Bangladesh. The Directorate General of Foreign Trade (DGFT) of India has imposed port restrictions on importing ready-made garments from Bangladesh.
Effective May 17, 2025, India banned the import of all ready-made garments from Bangladesh via land routes. Imports of RMG from Bangladesh are now allowed only through the seaports of Nhava Sheva (Mumbai) and Kolkata.
Of course, this restriction has severely impacted Bangladesh's annual garment exports to India, as nearly 93% of these goods previously came through land ports.
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Other Info:
Bangladesh’s trade relations with Myanmar are hardly sound or strong.
-- This is due to Myanmar’s ongoing internal conflicts/
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During seasonal shortages, Bangladesh turns to India for electricity and fuel.
** Indian-made construction materials and capital goods support industrial expansion.
** Bangladesh has (helplessly) increased electricity imports from India.
That means attempts to decouple from India would interrupt production in Bangladeshi factories.
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But New Delhi's actions like certain bans were retaliatory. The move is seen as a strategic response to earlier trade restrictions imposed by Bangladesh, including a ban on exporting Indian cotton yarn via land ports.
It has been reported that by September 2025, Indian fashion retailers like Marks & Spencer and H&M reported merchandise shortages and replenishment delays, especially in the affordable fashion segment. Take a closer look at some of these figures :
India imported goods worth $149.4 million from Bangladesh in July this year, which is 4 percent higher than the same period last year.
Moreover, in July–September of FY2023–24, Bangladesh’s exports were $441 million, which rose to $483.71 million in the same period this year, a 9.52 percent increase.
Bangladesh’s export of footwear to India increased by 43 percent and that of ready-made garments (RMG) rose by 17.38 percent.
Fish exports also increased by 42.04 percent in FY2024-25 compared to the previous fiscal year.
Pre 2024 August: Will things come back to Nostalgic Days ?
Extra info :
Bangladesh is the world’s second largest clothing exporter.
** In its 2024/25 financial year, which ended on June 30, 2025, clothing exports from the country reached US$39.35 billion.
-- The industry has set an ambitious export target of US$100 billion for 2029/30.
But analysts say this target to slightly unrealistic, especially when given that exports rose by an average of only 2.4% a year between 2018/19 and 2024/25.
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Nota Bene (Observe Carefully)
"India not only spent seven thousand crore of rupees for Liberation War of Bangladesh but also sacrificed lives of 3630 officers and jawan of Indian army, where 213 officers and jawans were missing and about 9856 officers and jawans were wounded.
The bloods of these soldiers are mixed with the soil of Independent Bangladesh". --
book ' Contribution of Tripura in Liberation War of Bangladesh' penned by Salam Azad, writer and human rights activist, Dhaka
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