Bangladesh May Gain as 50pc US Tariff on Indian Exports Reshapes Regional Trade

India’s exporters are feeling pressure after the United States doubled tariffs on Indian imports to 50 per cent, in a move tied to ongoing disputes over India’s purchases of Russian oil and broader trade frictions.

Meanwhile, Bangladesh is likely to gain new trade and export opportunities following the imposition of a 50 per cent tariff on Indian exports, as higher duties reduce the competitiveness of Indian goods in major international markets, according to economists and trade officials.

The sharp tariff hike will increase prices of Indian products for buyers in the United States and Europe, prompting importers to reassess sourcing strategies.

Analysts say Bangladesh, which competes closely with India in several export sectors, is well positioned to benefit from the shift.

Garments Sector Expected to Gain
Industry insiders expect the ready-made garments (RMG) sector to see the most immediate impact.

Bangladesh, already one of the world’s leading apparel exporters, offers lower production costs and established manufacturing capacity, making it an attractive alternative for buyers moving away from tariff-affected Indian suppliers.

Exporters said preliminary discussions with international buyers have increased in recent weeks, particularly for knitwear and woven garments.

Other Sectors in Line for Growth
Beyond garments, trade experts point to potential gains in:
#leather and footwear
#home textiles
#light engineering products
#pharmaceuticals

These sectors face direct competition from Indian exporters and could secure additional orders if the tariff remains in place.

Investment and Supply Chain Shifts
Economists say Bangladesh could attract increased foreign direct investment (FDI) as firms seek cost-effective production bases with stable access to global markets under rules set by the World Trade Organization.