The United States has climbed above India to become Bangladesh’s second-largest trading partner, as commerce between Dhaka and New Delhi cooled while purchases from the US climbed sharply.
Figures compiled by Bangladesh’s National Board of Revenue show that two-way commerce between Bangladesh and the US reached $12.67 billion over the last financial year.
Trade with India, by contrast, came to $10.72 billion, leaving Washington ahead by nearly $1.95 billion.
Beijing remains far and away Bangladesh’s top trading partner. Even so, the reshuffle below it carries weight for New Delhi, arriving at a moment when trade curbs and diplomatic friction between the two South Asian neighbours have been mounting.
The reordering has been driven chiefly by Dhaka stepping up its purchases from American suppliers. Imports sourced from the US climbed 43% year-on-year, rising from $2.49 billion to $3.56 billion.
Bangladesh’s imports from India, meanwhile, slipped by roughly 7.5%, and its exports to India eased by about 3%.
Behind Washington’s trade gains
The jump in commercial activity between the two countries stems largely from Dhaka’s push to buy more from American exporters amid ongoing negotiations over US tariff measures.
Bangladesh has stepped up purchases of American wheat, liquefied natural gas, soybean seed and cotton, and has additionally committed to acquiring 14 aircraft from the US plane maker Boeing.
NBR figures indicate Bangladesh brought in $227.7 million of wheat from the US over the last financial year, a striking turnaround given it recorded no such imports the year before.
Soybean seed purchases nearly doubled, climbing from around $350 million to $620 million, while cotton purchases rose from $230 million to $380 million.
This surge followed a trade agreement struck between Dhaka and Washington after the US had slapped counter-tariffs on Bangladeshi exports.
Signed in February, the pact commits Bangladesh to buying roughly $3.5 billion of American agricultural produce and close to $15 billion of energy products over a 15-year span, on top of expanded orders for aircraft and defence equipment.
Dhaka-Delhi commerce loses momentum
The contrast with the India relationship is stark. Bilateral trade has been squeezed by a string of restrictions and retaliatory steps introduced since 2025.
Bangladesh halted yarn imports from India routed through land border crossings, while India scrapped the arrangement that had let Bangladeshi cargo transit to third markets via Kolkata airport.
New Delhi has additionally tightened rules on a range of Bangladeshi import categories, covering garments, food items, jute products, cotton waste, plastics and wooden furniture.
The fallout has hit both sides of the trading relationship. Per the figures cited, Bangladesh’s garment shipments to India dropped from about $650 million in 2024-25 to roughly $570 million in the most recent financial year, a fall of nearly 12%.
India’s standing as a supplier slips too
New Delhi’s weakening position is equally apparent in Bangladesh’s sourcing of textile raw materials.
Cotton imports from India, which stood at about $520 million in 2024-25, fell by roughly 23% to $400 million in the latest year.
Cotton yarn purchases also declined, dropping from approximately $1.75 billion to $1.47 billion. Combined, the two categories account for a shortfall of around $400 million.
According to Prothom Alo, analysts suggest that non-tariff barriers have played a significant part in the downturn in Bangladesh-India commerce, with knock-on effects for producers and consumers alike.
The latest figures underline a shifting trade landscape for Bangladesh, with the US advancing rapidly up the rankings while India, having long held second place, now falls to third.
2. Bangladesh-US trade surges past India amid tariff deal
3. US displaces India in Bangladesh trade rankings as ties with Delhi cool
4. Bangladesh imports from US jump 43% as India trade slips
5. India slips to third in Bangladesh trade as Washington ties deepen
Image courtesy: BaoDau
