Luxury Car Imports Soar by 165%

India's share in Bangladesh's trade has declined since April 2024 due to import restrictions and consumer boycotts, while China’s share has grown. According to BBS data, India’s import share fell from 16.29% in March to 11.81% in July, whereas China’s rose from 23.48% in April to 29.36% in July.

In January 2025, Bangladesh's imports from India increased by 17.27%, despite political and public discourse advocating reduced dependency on Indian goods. Data from India’s Ministry of Commerce and Industry shows that during the first ten months (April-January) of the Indian fiscal year 2024-25, India's global exports grew by only 1.39%, while exports to Bangladesh rose by 6.6%.

Bangladesh’s fresh fruit imports fell to $128.51 million in the first half of FY25, the lowest in three years, due to the taka’s depreciation and high import duties. Letters of credit (LC) openings for fruit imports declined 3.29% year-on-year to $140.5 million in July-December FY25.

In January 2025, Bangladesh saw a 5.4% YoY decline in import LC openings, totaling $6.13 billion, due to lower demand and overdue LC payments. Weaker banks struggled to open new LCs, while state-owned banks prioritized clearing past dues.

Bangladesh's imports grew 3.53% YoY to $32 billion in H1 FY25, rebounding from a 20% decline the previous year, driven by higher exports and remittances. December 2024 saw a 30% YoY surge in imports, supported by increased industrial raw material demand for export-oriented industries.

Over the past 16 years, Bangladesh’s trade relations with Pakistan were strained under the Awami League government, but a shift is occurring following a change in government. Trade with Pakistan has increased, while trade with India has slightly decreased.