Written by The Banking Post
India narrowly overtook the United States to become Bangladesh’s second-largest trading partner in February, reflecting a shift in the country’s external trade dynamics.
According to the latest data from the Bangladesh Bureau of Statistics (BBS), India accounted for 8.47 per cent of Bangladesh’s total trade, equivalent to Tk 123.28 billion. The United States followed closely with an 8.46 per cent share, or Tk 123.17 billion.
The US had held the second position in January.
China continued to dominate as Bangladesh’s largest trading partner, accounting for 21.21 per cent of total trade in February, worth Tk 308.79 billion.
Bangladesh mainly imports industrial raw materials, capital machinery and consumer goods from China. Chinese products remain dominant in sectors such as electronics, machinery, textile inputs and chemicals, supported by competitive pricing and deferred-payment facilities.
Imports from India largely consist of essential commodities, including rice, onions, sugar and other food products, alongside industrial raw materials for local industries. Bangladesh also sources cotton, yarn and intermediate goods from the neighbouring country, benefiting from lower transport costs and geographical proximity.
The United States remains a major export destination for Bangladesh, particularly for readymade garments. Bangladesh also imports LPG, grains and agricultural products from the US.
Among other major trading partners, Indonesia ranked fourth, driven by imports of industrial raw materials, edible oil and coal. Brazil secured the fifth position, accounting for nearly 4 per cent of Bangladesh’s total trade, mainly through exports of soybean, edible oil, sugar and other agricultural commodities.
Trade officials said Bangladesh’s import pattern continues to reflect strong dependence on foreign raw materials and food products to support industrial production and domestic demand.
“China, India and the US are likely to remain dominant trading partners in the near term due to strong economic linkages and rising bilateral trade volumes,” a trade official said.
