Bangladesh’s imports from India are projected to decline to $5.92 billion in FY24, down from $10.02 billion in FY23 and $15.18 billion in FY22, due to the central bank’s import restriction policy aimed at conserving forex reserves. The finance ministry’s draft budget for FY25 reflects this trend. During the first three quarters of FY24, Bangladesh earned $1.46 billion from exports to India, marking a 3.27% year-on-year growth. Typically, Bangladesh imports refined petroleum, food grains, and textile materials from India. However, recent bans on food grain exports by India, citing domestic shortages, have forced Bangladeshi importers to seek alternative markets. Additionally, a severe forex reserve shortage and restrictive import policies have significantly reduced overall imports. Central bank data show a 15.42% year-on-year decline in import payments for the July-March period of FY24. Some local businesses have also shifted to importing from China.
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