Bilateral trade hurdles persist between Bangladesh and India, as highlighted by Commerce Minister Khandakar Abdul Muktadir in parliament today. Responding to a query from Abdul Baten MP, the minister noted a rise in Bangladesh’s trade deficit with India in the 2025-26 fiscal year compared to the previous year.
The current bilateral trade volume amounts to approximately $12.75 billion, with Bangladesh exporting goods valued at $1.89 billion to India, while the remaining portion comprises imports from India. Minister Muktadir emphasized that the government assesses the trade deficit within the broader trade landscape and highlighted a significant trade imbalance with China as well.
Acknowledging mutual restrictions over the past two years, the minister stressed the potential for boosting Bangladesh’s exports to India. He explained that import decisions are chiefly made by private entities based on price competitiveness, with India being a major supplier under these circumstances.
Regarding a recent visit by an Indian business delegation, Muktadir mentioned their proposal for a collaborative task force with local businesses to enhance infrastructure, a proposition that the government is actively considering to bolster export expansion efforts.
In efforts to enhance export capabilities, the government has identified key sectors such as leather, jute, shipbuilding, light engineering, and semiconductors as priorities, providing policy backing and attracting fresh investments. Plans are also in place to elevate other sectors to export-ready status.
Upon a query from Lutfur Rahman MP, the minister furnished data on Bangladesh’s trade deficit with India from FY2020-21 to FY2024-25, showing deficits of $7.31 billion, $11.70 billion, $7.72 billion, $7.43 billion, and $7.86 billion, respectively.
