Bangladesh’s exports of goods to neighboring India rose 7.67% in the first two months of the current 2026-27 fiscal year. This points to both rising demand for Bangladeshi goods in the Indian market and the potential for further export growth to India.
According to country-specific export data from the Export Promotion Bureau (EPB), Bangladesh exported goods worth $335.2 million to India in July-August of the current fiscal year, up from $311.3 million in the same period last fiscal year.
In other words, Bangladesh’s exports to India rose by $23.9 million year-on-year.
This upward trend in exports to the Indian market is consistent with the overall rise in the country’s export earnings. Bangladesh’s total goods exports reached about $9.16 billion in the first two months of the current fiscal year, up from $8.69 billion in the same period last fiscal year.
India is one of Bangladesh’s important regional markets. As a result, those in the sector believe this upward trend in exports to India is creating new opportunities to expand trade between the two countries.
According to EPB data, exports to India rose 15.37% in July alone.
Along with India, export earnings also rose in several of Bangladesh’s other important markets. In the first two months, exports to the United States rose 11.90% to $1.87 billion. Exports to Spain rose 11.70%, reaching $838.5 million.
However, Bangladesh still faces a significant deficit in bilateral trade with India. In the 2025-26 fiscal year, Bangladesh imported about $11 billion worth of goods from India. By contrast, Bangladesh’s exports to India over the same period were about $1.75 billion. As a result, the trade deficit between the two countries stood at about $9.21 billion that fiscal year.
To reduce this large trade deficit, those in the sector are emphasizing the need to seize opportunities to increase exports of Bangladeshi goods to the Indian market. In particular, if greater access can be created in India’s vast consumer market for goods produced in Bangladesh, there is an opportunity to bring more balance to bilateral trade.
Exports to the United Kingdom rose 4.54% during this period, reaching $970.4 million. Exports to the Netherlands rose 5.82%, reaching $493.5 million. Exports to Canada rose 3.33% to $279.3 million.
Among emerging markets, Bangladesh’s exports to Turkey rose the most. Exports to that country rose 87.10%, reaching $138.9 million.
Exports to the United Arab Emirates also rose, by 19.50%, to $74.2 million. Exports to Mexico rose 15.55%, to $65 million.
Bangladesh’s exports to Sweden rose 12.09%, to $130.4 million. Exports to Australia rose 2.51%, reaching $164.9 million.
The overall export picture was also quite good in August. Bangladesh exported $4.43 billion worth of goods that month, up 13.14% from $3.92 billion in August of last year.
Given its large market, geographic proximity and the two countries’ trade ties, the Indian market holds particular importance for exporters. Recent export growth suggests there is an opportunity to increase the presence of Bangladeshi goods in India and other regional and emerging markets, alongside traditional markets.
In particular, beyond ready-made garments, there is an opportunity to make greater use of the Indian market to boost exports of non-traditional products, including plastic goods, processed food, jute and jute goods, and leather goods.
Those in the sector believe that if Bangladesh can sustain export expansion in the Indian market alongside entering new markets and diversifying its products, it will be possible to further increase the country’s overall export earnings. At the same time, this export-growth trend could play an important role in reducing the existing large trade deficit with India.