The United States has overtaken India to become Bangladesh’s second-largest trading partner, as trade between Dhaka and New Delhi declined while imports from Washington surged
The United States has overtaken India to become Bangladesh’s second-largest trading partner, as trade between Dhaka and New Delhi declined while imports from Washington surged.
According to data from Bangladesh’s National Board of Revenue (NBR), cited by Prothom Alo, Bangladesh’s total two-way trade with the US stood at $12.67 billion in the last financial year. Trade with India, meanwhile, was $10.72 billion, giving the US a lead of nearly $1.95 billion.
China continues to dominate Bangladesh’s trade rankings by a wide margin. The latest shift, however, is significant for India as it comes amid growing trade restrictions and strained bilateral ties between New Delhi and Dhaka.
The change has been driven largely by Bangladesh buying substantially more goods from the US. Imports from America rose 43 per cent in a year, from $2.49 billion to $3.56 billion. By comparison, Bangladesh’s imports from India fell by around 7.5 per cent, while exports to India declined by about 3 per cent.
Why US trade surged
The rise in US-Bangladesh trade has been closely linked to Dhaka’s efforts to increase purchases from America during negotiations over US tariffs.
More from WorldBangladesh increased imports of American wheat, liquefied natural gas (LNG), soybean seeds and cotton. The country has also agreed to purchase 14 aircraft from US aerospace giant Boeing.
NBR figures show that Bangladesh imported $227.7 million worth of wheat from the US in the last financial year, despite recording no wheat imports from America in the previous year. Soybean seed imports rose from around $350 million to $620 million, while cotton purchases increased from $230 million to $380 million. Government-sector LNG imports also reached nearly $480 million.
The increase came as Bangladesh and the US negotiated a trade agreement after Washington imposed counter tariffs on Bangladeshi goods. A deal signed in February included plans for Bangladesh to buy around $3.5 billion in US agricultural products and nearly $15 billion worth of energy products over 15 years, alongside increased purchases of aircraft and military equipment.
India-Bangladesh trade takes a hit
The picture is markedly different on the India-Bangladesh trade front.
Bilateral commerce has suffered amid a series of restrictions and countermeasures introduced since 2025. Bangladesh suspended yarn imports from India through land ports, while India withdrew a facility that allowed Bangladeshi goods to be exported to third countries through Kolkata airport.
India also introduced restrictions on several categories of Bangladeshi imports, including garments, food products, jute goods, cotton waste, plastic products and wooden furniture.
These measures have affected both sides of the trade relationship. According to the data cited by the report, Bangladesh’s garment exports to India fell from around $650 million in 2024-25 to about $570 million in the latest financial year, a decline of nearly 12 per cent.
India also loses ground as supplier
India’s declining position is also visible in Bangladesh’s imports of key textile raw materials.
Bangladesh imported around $520 million worth of cotton from India in 2024-25. That figure fell by about 23 per cent to $400 million in the latest fiscal year.
Imports of cotton yarn also dropped, from around $1.75 billion to $1.47 billion. Together, the decline in cotton and cotton-yarn purchases amounted to roughly $400 million.
Experts say that non-tariff barriers had contributed to the fall in Bangladesh’s trade with India, affecting both producers and consumers.
The latest figures point to a changing pattern in Bangladesh’s external trade — with the US gaining ground rapidly while India, after years in second place, slips to third.
