Bangladesh faces a large and persistent trade deficit with India (nearly US$7.86 billion in FY2024–25), driven by heavy reliance on Indian imports while its own exports face non-tariff barriers and anti-dumping duties.

India has launched a new anti-dumping investigation into Bangladeshi PET film and previously imposed duties on jute products and hydrogen peroxide, reducing Bangladesh’s competitiveness and export earnings in the Indian market.

Bangladesh’s most effective response has been diplomatic engagement, WTO mechanisms, transparent data submission and market diversification rather than retaliation — an approach that previously led to the withdrawal of duties on hydrogen peroxide.

Undoubtedly, Bangladesh and India have had strong economic ties over the years. Despite that Bangladesh continues to face a significant trade deficit with India, making it one of the country’s largest bilateral trade imbalances. In FY2024–25, Bangladesh exported goods worth approximately US$1.76 billion to India, while imports from India reached about US$9.62 billion, resulting in a trade deficit of nearly US$7.86 billion. The imbalance is largely driven by Bangladesh’s dependence on Indian cotton, yarn, machinery, petroleum products, chemicals, and food commodities. Although Bangladeshi exports to India have gradually diversified, the gap remains substantial.  Bangladesh exports a wide range of products to India, with ready-made garments (RMG), jute and jute products, textiles, leather and footwear, pharmaceuticals, plastic goods, ceramics, processed food, fish and seafood, and agricultural products being the major export items. In recent years, exports have also expanded to include bicycles, light engineering products, paper products, and home textiles. Despite this growing export basket, Bangladeshi exporters continue to face challenges such as non-tariff barriers and anti-dumping measures, which constrain the full potential of bilateral trade.

Recently, India has initiated an anti-dumping investigation into imports of polyethylene terephthalate........

© Eurasia Review