Which Indian Supplies Is Bangladesh Completely Dependent On? Halting Them May Starve Dhaka | World News
New Delhi: India and Bangladesh share a long-standing trade relationship that enables the supply and exchange of a wide range of essential goods. However, internal political instability in Dhaka can directly affect this flow, especially on issues critical to daily life. If supplies are disrupted, shortages could affect everything from food to clothing, raising concerns about economic and social impacts.
Bangladesh is dependent on India for wheat, rice, sugar, onions, potatoes, garlic, spices, fruits, vegetables, cotton, refined oil, plastics, steel, electrical equipment, pharmaceuticals and medical supplies. Geographical proximity and low costs make India an indispensable partner. Any disruption could trigger inflation and job losses.
Wheat: Bangladesh imports large quantities of wheat from India, which is the cornerstone of food security. In the months before the trade restrictions, the value of imports was $734.54 million (6,575 crore rupees), or approximately 2.1 million metric tons. Following the restrictions, only 150,000 metric tons were exported, mostly under prior agreements.
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Rice: Various types of rice, including Basmati, are imported to meet domestic demand and government reserves.
Sugar: In 2021-22, Bangladesh imported around $565.6 million (Rs 5,063 crore) worth of sugar from India, which is vital for food consumption and processing industries.
Onion, Potato, Garlic: Daily staples depend on supply in India. Any outages could increase prices.
Spices and Cereals: Trade in these commodities reached $434.8 million (Rs 3,891 billion) in 2021-22, sustaining domestic consumption and the food industry.
Fruits and Vegetables: Fresh and processed produce comes primarily from India.
Cotton: About 35% of India’s cotton exports, which are indispensable for Bangladesh’s garment industry, go to Bangladesh.
Refined Oil, Plastics, Steel, Electrical Equipment: India exports these materials that are critical for the manufacturing, construction and energy sectors.
Medicines and Medical Supplies: India is a major supplier of Bangladesh’s healthcare needs.
Why Does Bangladesh Trust India?
Geography plays an important role; 94% of Bangladesh’s 4,367 km border is shared with India, making trade, transit and security heavily dependent on New Delhi. Indian goods reach Bangladesh faster and at lower cost, providing the country with an economic advantage.
Trade and Economic Impact
Bilateral trade reached $15.9 billion in fiscal 2022-23, with Bangladesh exporting $2 billion to India. India’s exports were $14 billion in 2021, $13.8 billion in 2022 and $11.3 billion in 2023. Disruptions in the supply chain caused by global factors such as the Russia-Ukraine war also had an impact.
India has provided $8 billion in development assistance to Bangladesh in the last eight years by supporting roads, railways and port projects. During the term of then Prime Minister Sheikh Hasina (2009 – July 2024), Bangladesh’s GDP increased from 123 billion dollars to 455 billion dollars, and per capita income increased from 841 dollars to 2,650 dollars.
Can Another Country Replace India?
China is a major investor in Bangladesh, with exports of $7 billion through the Belt and Road Initiative and $22 billion in 2023. But experts say Beijing cannot match India in terms of cost and proximity.
Professor Harsh Pant of King’s College London explains: “Goods from India arrive at a cost and speed that China or any other country cannot afford. The textile sector, which contributes 11% to GDP, relies heavily on Indian raw materials. India can strategically influence Bangladesh, but the situation would have to deteriorate significantly for that to happen.”
Simply put, India’s supply is the lifeblood of Bangladesh’s economy. Any disruption could directly impact inflation, employment and GDP. Due to rising tensions, the Indian visa center in Chattogram has been closed from Sunday until further notice; Dhaka and two other centers were closed before. Security has also been stepped up at the Deputy High Commission of India office and the visa application center in Sylhet. India has called on Bangladesh to bring the perpetrators of the murder of a Hindu youth to justice.
