India has overtaken the United States to become Bangladesh’s second-largest trading partner, highlighting major shifts in regional trade patterns and strengthening economic connectivity in South Asia.

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• India has officially become Bangladesh’s second-largest trading partner after narrowly surpassing the United States in overall bilateral trade volume during February 2026.
• According to Bangladesh Bureau of Statistics data, India accounted for nearly 8.47 percent of Bangladesh’s total external trade during the reporting period.
• The United States closely followed India with approximately 8.46 percent share, making the competition between both economies extremely close in trade rankings.
• China continues to remain Bangladesh’s largest trading partner with more than 21 percent share driven mainly by industrial imports and manufacturing supplies.
• Bangladesh imports several essential products from India including rice, onions, sugar, cotton, yarn, industrial goods, and key manufacturing raw materials.
• India’s geographical advantage and long land border with Bangladesh significantly reduce transportation costs, delivery time, and logistical challenges for bilateral trade.
• Bangladesh’s textile and industrial sectors increasingly depend on Indian intermediate goods and raw material supplies for uninterrupted production and export activities.
• Experts believe India’s rising trade influence reflects stronger regional economic integration and expanding strategic commercial partnerships across South Asia.