Trade Imbalance with India peaks at $7.86b
Bangladesh’s trade imbalance with India has reached its highest level among SAARC countries, even as both nations reaffirm efforts to deepen economic cooperation and regional integration.
Industries Minister Khandakar Abdul Muktadir on Monday informed Parliament that the country’s trade deficit with India stood at US$ 7.86 billion in the 2024-25 fiscal year-the largest gap Bangladesh faces with any SAARC member.
Responding to a starred question from ruling party lawmaker SM Jahangir Hossain, the minister said Bangladesh exported goods worth $1.76 billion to India, while imports surged to $9.62 billion, creating a deficit of $7.86 billion.
He noted that Bangladesh also runs trade deficits with Afghanistan, Bhutan and Pakistan, though the gaps are comparatively smaller.
In contrast, the country maintains trade surpluses with Nepal, Sri Lanka and the Maldives.
According to the data presented, Bangladesh recorded a deficit of $681.30 million with Pakistan, $29.77 million with Bhutan and $10.71 million with Afghanistan.
On the surplus side, exports to Sri Lanka and the Maldives slightly exceeded imports, while trade with Nepal showed a more pronounced positive balance.
Despite the widening deficit with India, both countries are positioning themselves to strengthen economic ties and expand cooperation.
Indian High Commissioner to Bangladesh Pranay Verma said Bangladesh and India, as the two largest economies in the region, are “uniquely positioned” to lead regional economic integration and build resilient, future-ready supply chains.
He made the remarks during an interactive session with a delegation from the India Bangladesh Chamber of Commerce and Industry at the High Commission.
Highlighting the importance of connectivity and geographical proximity, Verma stressed the need to transform existing trade linkages into broader economic partnerships encompassing investment and value chain integration.
He also underscored the role of IBCCI-comprising over 500 companies-in promoting bilateral trade and business collaboration.
The envoy pointed to recent developments aimed at facilitating trade, including mechanisms for settlement in Indian Rupees and ongoing infrastructure upgrades at key land customs stations to improve cross-border efficiency.
The twin developments underscore a complex economic dynamic: while Bangladesh’s trade deficit with India continues to widen, both sides remain committed to expanding cooperation and unlocking new opportunities in bilateral and regional trade.
