India Overtakes USA as Bangladesh’s Second Largest Trading Partner

India has achieved the distinction of surpassing the USA to become Bangladesh’s second largest trading partner, reflecting the changing dynamics of South Asian trade.

China still remains at the top, while India’s exports of essential commodities and industrial inputs continue to strengthen bilateral economic relations.

According to the latest trade data from the Bangladesh Bureau of Statistics (BBS), India overtook the United States by a very narrow margin in Bangladesh’s overall trade rankings as of February 2026.

India’s contribution accounted for 8.47% of Bangladesh’s total external trade, equivalent to approximately 123.28 billion taka.

The USA remained very close behind India with 8.46%, amounting to around 123.17 billion taka. Although the difference is extremely small, the symbolic significance of this development is very high.

In February, China accounted for nearly 21.21% of Bangladesh’s total trade, valued at approximately 308.79 billion taka.

China’s dominance continues mainly because of Bangladesh’s dependence on Chinese industrial imports.

India-Bangladesh Relations

India and Bangladesh share an organic bond due to their common cultural heritage and historical events.

This also includes the suffering and large-scale separation of families during the Partition of India in 1947.

India played a significant role in the emergence of independent Bangladesh during the Liberation War of 1971 and also provided shelter to an estimated 10 million refugees during the conflict.

Furthermore, India was the first country to recognize Bangladesh as an independent state.

Notably, 16 December is celebrated as “Victory Day” in India and “Liberation Day” in Bangladesh.

Importance of Bangladesh for India

India shares a 4,096-kilometre-long border with Bangladesh, which is the fifth longest border in the world. The Indian states of Assam, West Bengal, Mizoram, Meghalaya, and Tripura share borders with

Bangladesh.

This relationship is important for India’s security and foreign policy. India requires Bangladesh’s cooperation to counter China’s “String of Pearls” policy.

High-level exchanges include the India-Bangladesh CORPAT “Bongosagar” exercise, meetings of regional coast guard commanders, and annual defence dialogues.

India-Bangladesh Connectivity:

Rail Connectivity: Currently, three trains operate between the two countries: Maitree Express (since 2008, connecting Kolkata and Dhaka); Bandhan Express (since 2017, connecting Kolkata and Khulna); and Mitali Express (since June 2022, between New Jalpaiguri and Dhaka).

In November 2023, the sixth cross-border rail link between Agartala station in India and Akhaura in Bangladesh was inaugurated. This rail connection will provide an alternative route to India’s Northeast.

The other five operational rail links between India and Bangladesh are:

Haldibari (India) – Chilahati (Bangladesh) rail link

Petrapole (India) – Benapole (Bangladesh)

Gede (India) – Darshana (Bangladesh)

Singhabad (India) – Rohanpur (Bangladesh)

Radhikapur (India) – Birol (Bangladesh).

India-Bangladesh Road and Inland Water Connectivity:

At present, five bus service routes connecting Kolkata, Agartala, and Guwahati with Dhaka and further to Khulna are operational between India and Bangladesh.

Since 1972, the Protocol on Inland Water Transit and Trade (PIWTT) has been operational between India and Bangladesh. It allows the movement of goods for inter-country trade as well as transit through the river systems of both countries using barges and vessels.

Port Connectivity: Both countries implemented the agreement for the use of Chattogram and Mongla ports in 2023.