India Slips To Third As US Becomes Bangladesh’s Second-Largest Trade Partner

The United States has overtaken India to become Bangladesh’s second-largest trading partner, marking a notable shift in Dhaka’s trade pattern as commerce with Washington expanded while bilateral trade with New Delhi declined.

According to Bangladesh’s National Board of Revenue data cited by Prothom Alo, Bangladesh’s two way trade with the US reached $12.67 billion in the latest financial year. Trade with India stood at $10.72 billion, leaving the US ahead by nearly $1.95 billion. China remains Bangladesh’s largest trading partner.

The shift comes amid changing trade policies and strained India Bangladesh economic ties. Bangladesh’s imports from the US jumped 43 per cent, from $2.49 billion to $3.56 billion. In contrast, imports from India fell about 7.5 per cent, while Bangladesh’s exports to India declined around 3 per cent.

Bangladesh significantly increased purchases of American goods during negotiations over tariffs. Its imports from the US included wheat, soybean seeds, cotton and liquefied natural gas.

Wheat imports from the US rose to $227.7 million, compared with no imports recorded in the previous year. Soybean seed purchases increased from about $350 million to $620 million, while cotton imports rose from $230 million to $380 million. Government sector LNG imports reached nearly $480 million.

The increase also follows the US Bangladesh reciprocal trade agreement signed in February. Under the agreement, Bangladesh committed to purchase about $3.5 billion of US agricultural products, while planned energy purchases could reach $15 billion over 15 years. Bangladesh also agreed to facilitate the purchase of 14 Boeing aircraft.

The agreement came after Washington imposed counter tariffs on Bangladeshi goods and helped drive higher purchases from the US.

Trade between India and Bangladesh has faced several restrictions since 2025. Bangladesh suspended yarn imports from India through land ports, while India withdrew a facility allowing Bangladeshi goods to be exported to third countries through Kolkata airport.

India also imposed restrictions on several Bangladeshi imports, including garments, food products, jute goods, cotton waste, plastics and wooden furniture.

Bangladesh’s garment exports to India fell from about $650 million in 2024 25 to $570 million in the latest financial year. India has also lost ground in supplying Bangladesh’s textile industry.

Cotton imports from India fell around 23 per cent, from $520 million to $400 million. Cotton yarn imports dropped from roughly $1.75 billion to $1.47 billion. Together, the decline in cotton and cotton yarn purchases amounted to around $400 million.

The latest figures underline a significant change in Bangladesh’s trading relationships, with the US gaining ground rapidly while India falls to third place. The shift reflects the latest financial year’s trade flows and comes as economic ties between Dhaka and New Delhi face growing restrictions and challenges.