Violence in India's neighboring country, Bangladesh, ignited rapidly, leading to a sudden coup. After more than 100 people were killed in violent protests, Prime Minister Sheikh Hasina resigned. Amidst the turmoil, a large number of protesters stormed the Dhaka Palace and vandalized the statue of Mujib. As tension grips the country, Army Chief General Waqar-uz-Zaman announced the formation of an interim government. Despite the unrest, India and Bangladesh share a robust trade relationship, with significant import-export exchanges. Let's explore what goods Bangladesh imports from India and vice versa.
Business Impacted Daily by Millions Due to Violence
Recent violence in Bangladesh has impacted its trade with India. According to a report, business worth over 1.5 billion rupees is affected daily. The annual trade across the Petrapole and Benapole border, typically around 300 billion rupees, has come to a standstill.
India: Bangladesh's Second Largest Export Partner
A deeper look into India-Bangladesh trade on ibef.org reveals Bangladesh as a significant trading partner for India. In the fiscal year 2023-24, total trade between the two nations was 14.22 billion dollars. India exported 6,052 goods to Bangladesh in FY23, valued at 12.20 billion dollars, down from 16.15 billion dollars in FY22.
Key Goods Exported from India to Bangladesh (Fiscal Year 2023)
Cotton Yarn (1.02 billion dollars)
Petroleum Products (816 million dollars)
Cereals (556 million dollars)
Cotton Fabric and Other Items (541 million dollars)
Organic and Inorganic Chemicals (430 million dollars)
As for the goods imported from Bangladesh to India in fiscal year 2023-24, 1,154 items were imported, totaling approximately 2.02 billion dollars, compared to 1.97 billion dollars in FY22.
Key Goods Imported from Bangladesh to India (Fiscal Year 2023)
RMG Cotton (510 million dollars)
Cotton Fabrics, Made-ups (153 million dollars)
RMG Man-Made Fiber (142 million dollars)
Spices (125 million dollars)
Jute (103 million dollars)
Recent Start to Trade in Indian Rupees
In recent times, trade relations between India and Bangladesh have strengthened further. A significant step was taken with the commencement of trade in Indian rupees. During a visit to India after the formation of Modi 3.0 government, former Bangladeshi Prime Minister Sheikh Hasina met Prime Minister Narendra Modi on June 22, during which several agreements, including Indian rupee trade, were finalized.
