Bangladesh and India: Trade and Ties

How India and Bangladesh trade, connect through transport and energy links, and how politics after 2024 affected relations, with a recap of the module.

India and Bangladesh share a 4,000-km border.

Trade

Bangladesh is one of India’s largest trading partners in South Asia.
India exports cotton, yarn, fuel, food and machinery.
Bangladesh exports garments and jute to India.

Connectivity

Rail and bus links.
Transit for goods through Bangladesh to India’s Northeast.
Power: Bangladesh imports electricity from India, including from Adani’s Godda plant in Jharkhand.

Land Boundary Agreement

In 2015, the countries swapped enclaves, resolving a long-standing border issue.

After 2024

Relations became strained after Hasina’s exit to India, with trade restrictions on some goods in 2025.

Module recap

Bangladesh was born in 1971 amid war and later famine.
It defied the “basket case” label with social progress.
Grameen pioneered microfinance; BRAC runs services at scale.
Garments brought women into paid work.
Rana Plaza led to the Accord.
Remittances exceed 20 billion dollars.
bKash spread mobile money.
The delta faces climate risks.
The 2024 uprising ousted Hasina.
LDC graduation is due in 2026.

The enclave swap

In 2015, residents of tiny enclaves surrounded by the other country finally gained citizenship and access to services after the boundary agreement.

Thinking Bangladesh's growth is only about garments

Social policy, NGOs and remittances matter too.

Key takeaways

India and Bangladesh trade cotton, fuel, garments and power.
The 2015 agreement swapped enclaves.
Relations were strained after 2024.
Bangladesh's rise combines garments, NGOs and social policy.