Bangladesh’s trade with South Asian neighbours remains sharply imbalanced and overwhelmingly dominated by India, leaving the country with a regional trade deficit of $8.6 billion.
A Bangladesh Bank report shows Bangladesh exported $1.9 billion worth of goods to South Asian Association for Regional Cooperation (SAARC) economies in FY2024-25, accounting for 4.4 per cent of its global exports.
Imports from the region, on the other hand, reached $10.5 billion, or 15.6 per cent of Bangladesh’s total imports.
The figures mean Bangladesh imports about 5.6 times more from SAARC countries than it exports to them, highlighting a structural imbalance in regional trade.
India dominates Bangladesh’s regional commerce. It accounts for about 88.83 per cent of Bangladesh’s exports to SAARC countries and supplies 91.4 per cent of imports from the bloc.
As a result, India represents about 91 per cent of Bangladesh’s total trade with SAARC and roughly 92 per cent of the country’s $8.6 billion deficit with the regional bloc.
India exports food grains, raw materials, machinery and petroleum products to Bangladesh, making it the primary supplier of key industrial inputs.
The findings come from the report Economic Engagement of Bangladesh with SAARC at a glance (2024–2025) prepared by the Bangladesh Bank Statistics Department under the SAARCFINANCE Database Cell.
The central bank report cautions that heavy reliance on a single partner raises concerns about supply chain resilience, particularly during periods of geopolitical or trade disruption.
Bangladesh’s exports to SAARC countries remain concentrated in a limited set of products, mainly ready-made garments, pharmaceuticals and leather goods.
Other regional markets such as Nepal, Bhutan, Sri Lanka and Maldives remain largely untapped despite potential opportunities for export expansion within the region.
The report also shows that economic linkages among South Asian economies remain weak beyond trade.
Remittance inflows from SAARC countries amounted to $157.8 million in FY2024-25, less than 1 per cent of Bangladesh’s total remittance earnings of $30.3 billion, indicating minimal labour migration within the region.
Foreign direct investment from SAARC countries also remains limited, with India emerging as the dominant regional investor, particularly in telecommunications, pharmaceuticals, financial services and consumer goods.
Bangladesh Bank prepared the review to provide policymakers with a comprehensive picture of Bangladesh’s economic engagement with SAARC economies across exports, imports, remittances, foreign investment and external debt.
