India-Bangladesh Trade: In 1971, India gave independence to Bangladesh from Pakistan on the strength of its military and economic power. But in today’s circumstances, when Bangladesh itself wants to distance itself from India, its situation has become critical. Economic and social decline has started in Bangladesh after the fall of Sheikh Hasina government in August 2024 and the coming to power of anti-India forces.
From the economic point of view, Bangladesh’s dependence on India is to a great extent. 94% of Bangladesh’s border is with India. Due to this 4,367 km long border, Bangladesh’s trade and security are highly dependent on India. For example, the total trade between India and Bangladesh in 2022-23 was $16 billion. In this, Bangladesh’s export to India was only 2 billion dollars, while the import from India was 14 billion dollars. India sends products like cotton, grains, sugar, electronic equipment, and steel to neighboring countries.
textile industry of bangladesh
If we talk about Bangladesh’s GDP, the textile industry contributes 11 percent to it. Of this, India exports 35 percent of its total cotton production to Bangladesh. In this way, if India stops cotton export, Bangladesh’s textile industry may come to a standstill. Since August this year, Bangladesh’s economy has suffered a loss of Rs 2 lakh crore, due to which the GDP growth rate, which was earlier 6.3 percent, is now estimated to be less than 5. Apart from this, the decline in per capita income and rise in inflation have made the situation worse.
Influence of China and Pakistan on Bangladesh
Pakistan and China are trying to pit Bangladesh against India. Bangladesh recently imported 25,000 tonnes of sugar from Pakistan, but its price was higher than that of India. China and Pakistan are luring Bangladesh to provide nuclear technology, but due to this Bangladesh may have to face international sanctions.
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