India is Bangladesh's largest trading partner.
The two countries share a long and complex history, with strong economic ties that have only grown stronger in recent years. India is a major source of imports for Bangladesh, particularly in the areas of raw materials, machinery, and consumer goods. Bangladesh, in turn, exports a variety of products to India, including ready-made garments, jute products, and pharmaceuticals.
The bilateral trade between the two countries has grown significantly in recent years, reaching over $14 billion in 2022. This growth is driven by several factors, including the increasing economic integration of the two countries, the expansion of trade agreements, and the growing demand for Bangladeshi goods in the Indian market.
Here are some key aspects of the India-Bangladesh trade relationship:
- Strong economic ties: Both countries are members of the South Asian Association for Regional Cooperation (SAARC) and have signed several bilateral trade agreements, including the Comprehensive Economic Partnership Agreement (CEPA).
- Shared history and culture: The two countries share a long history and cultural heritage, which has fostered strong economic and social ties.
- Complementary economies: India and Bangladesh have complementary economies, with India being a major source of raw materials and capital goods for Bangladesh, while Bangladesh is a significant supplier of labor-intensive manufactured goods to India.
- Growing investment: India is a major investor in Bangladesh, particularly in the sectors of infrastructure, energy, and manufacturing.
- Strategic partnership: The two countries have also developed a strong strategic partnership, with India supporting Bangladesh's development efforts and providing security assistance.
The India-Bangladesh trade relationship is an important example of the growing economic integration of South Asia. It is a win-win situation for both countries, promoting economic growth and prosperity.
