Bangladesh’s exports of goods to neighbouring India increased by 7.67 percent in the first two months of the current fiscal year 2026-27, creating prospects for further export growth in the Indian market alongside rising demand for Bangladeshi products.
According to country-wise export data of the Export Promotion Bureau (EPB), Bangladesh exported goods worth US$335.2 million to India during July-August of the current fiscal year, compared with $311.3 million during the same period of the previous fiscal year.
Thus, Bangladesh's exports to India increased by $23.9 million year-on-year.
The rise in exports to the Indian market is in line with the overall growth in Bangladesh's export earnings. The country's total merchandise exports reached around $9.16 billion in the first two months of the current fiscal year, compared with $8.69 billion during the same period of the previous fiscal year.
India is one of the important regional markets for Bangladesh. As a result, the rising export trend to the country is creating new opportunities for expanding bilateral trade, said concerned people.
According to EPB data, Bangladesh's exports to India increased by 15.37 percent in July alone.
Alongside India, export earnings from several important markets also increased. During the first two months, exports to the United States rose by 11.90 percent to $1.87 billion, while exports to Spain increased by 11.70 percent to $838.5 million.
However, Bangladesh still has a large trade deficit with India. In fiscal year 2025-26, Bangladesh imported goods worth around $11 billion from India, while its exports to the country stood at around $1.75 billion during the same period. As a result, the bilateral trade deficit stood at around $9.21 billion in the fiscal year.
Concerned people are emphasising the need to utilise opportunities to increase exports of Bangladesh products to the Indian market to reduce the large trade deficit. In particular, greater access to India's huge consumer market for Bangladeshi products could help bring greater balance to bilateral trade.
During the period, Bangladesh's exports to the United Kingdom increased by 4.54 percent to $970.4 million. Exports to the Netherlands rose by 5.82 percent to $493.5 million, while exports to Canada increased by 3.33 percent to $279.3 million.
Among emerging markets, Bangladesh's exports to Turkey recorded the highest growth. Exports to the country increased by 87.10 percent to $138.9 million.
Besides, exports to the United Arab Emirates increased by 19.50 percent to $74.2 million, while exports to Mexico rose by 15.55 percent to $65 million.
Bangladesh's exports to Sweden increased by 12.09 percent to $130.4 million, while exports to Australia rose by 2.51 percent to $164.9 million.
The overall export picture was also encouraging in August. Bangladesh exported goods worth $4.43 billion during the month, which was 13.14 percent higher than the $3.92 billion recorded in August last year.
India is particularly important to Bangladeshi exporters because of its large market, geographical proximity and commercial connectivity between the two countries. The recent export growth indicates opportunities to increase the presence of Bangladeshi products in regional and emerging markets, including India, alongside traditional markets.
In particular, there are opportunities to further utilise the Indian market to increase exports of non-traditional products, including plastic goods, processed food, jute and jute products, and leather goods, alongside readymade garments.
Concerned people believe that continued expansion into the Indian market, entry into new markets and product diversification could further increase Bangladesh's overall export earnings. At the same time, the rising export trend could play an important role in reducing the existing large trade deficit with India.
