India has overtaken the United States to become Bangladesh’s second-largest trading partner as of February 2026, according to the Bangladesh Bureau of Statistics (BBS). This shift in trade dynamics is attributed to lower freight costs and a steady demand for essential commodities and industrial raw materials from India.
BBS data shows that India accounted for 8.47% of Bangladesh’s total external trade, amounting to Tk1,232.8 crore. The United States, now in third place, held an 8.46% share, valued at Tk1,231.7 crore. China remains the largest trading partner with a 21.21% share, equivalent to Tk3,087.9 crore.
Trade experts highlight that Bangladesh’s trade with the US is primarily export-driven, focusing on readymade garments, whereas trade with India and China is import-heavy. The proximity of provides cost-effective access to raw materials, stabilizing local market prices and supporting industrial supply chains.
Historically, Bangladesh has relied on India for quick shipments of food staples during domestic shortages. Looking forward, trade officials anticipate that the dominance of China, India, and the US will continue, reflecting Bangladesh’s reliance on imported raw materials for its export-driven economy.
Published in SouthAsianDesk, May 22, 2026
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