India Overtakes US to Become Bangladesh’s Second-Largest Trading Partner

India has surpassed the United States to become Bangladesh’s second-largest trading partner as per the latest trade data. This development highlights the economic influence of the region but the China still remains the Bangladesh’s biggest trading partner.

India Moves Ahead of the United States in Bangladesh Trade

According to the latest trade data from the Bangladesh Bureau of Statistics (BBS), India has just narrowly surpassed the United States in Bangladesh’s overall trade rankings by February 2026.

India had accounted for the 8.47% of Bangladesh’s total external trade and it is equivalent to approximately Tk 123.28 billion.

The United States has followed very closely with 8.46%, which is roughly Tk 123.17 billion.

The margin is extremely narrow, but the symbolic significance of this number is important.

China Remains Bangladesh’s Largest Trading Partner

Despite the India-US change, China still remains in the dominate position in Bangladesh’s trade ecosystem.

China accounted for the nearly 21.21% of Bangladesh’s total trade, which is worth around Tk 308.79 billion in February.

China’s dominance is largely driven by the Bangladesh’s dependence on Chinese industrial imports.

Major Chinese exports to Bangladesh includes the,

• Industrial raw materials
• Capital machinery
• Electronics
• Textile inputs
• Chemicals
• Consumer products

Also competitive pricing and deferred payment facilities of China continue to make it an attractive trade partner.

Why India’s Trade Position Is Strengthening

India’s rise reflects the practical trade advantages.

India shares the long land border with Bangladesh which reduce the transport time and freight costs.

This makes the trade faster and often cheaper than distant suppliers.

Also Bangladesh imports the several critical items from India, including the,

• Rice
• Onions
• Sugar
• Food commodities
• Cotton
• Yarn
• Industrial intermediate goods

Also the textile and manufacturing sectors in the Bangladesh increasingly rely on to the Indian raw materials for production continuity.

Other Major Trading Partners

Also Bangladesh’s broader trade network remains diversified.

Indonesia ranked at the fourth and  mainly driven by exports of,

• Coal
• Edible oils
• Industrial raw materials

Also the Brazil became the fifth-largest trading partner.

Bangladesh mainly imports the

• Soybeans
• Sugar
• Edible oils
• Agricultural commodities