Which Indian Supplies Is Bangladesh Completely Dependent On? Halting Them May Starve Dhaka

Bangladesh relies heavily on India for essential commodities, industrial inputs and medical supplies. Any disruption could trigger inflation, unemployment and economic strain similar to crises seen elsewhere.

New Delhi: India and Bangladesh share a long-standing trade relationship, supplying and exchanging a wide range of essential goods. However, internal political instability in Dhaka could directly impact this flow, especially for items critical to daily life. If supplies are interrupted, shortages could affect everything from food to clothing, raising concerns about economic and social fallout.

Bangladesh depends on India for wheat, rice, sugar, onions, potatoes, garlic, spices, fruits, vegetables, cotton, refined petroleum, plastics, steel, electrical equipment, medicines and medical supplies. Geographical proximity and lower costs make India an indispensable partner. Any disruption could trigger inflation and job losses.

Wheat: Bangladesh imports large quantities of wheat from India, a cornerstone of its food security. In the months before trade restrictions, imports were valued at $734.54 million (Rs 6,575 crore), roughly 2.1 million metric tons. Post-restrictions, only 150,000 metric tons were exported, mostly under prior agreements.

Rice: Various varieties of rice, including Basmati, are imported to meet domestic demand and government reserves.

Sugar: In 2021-22, Bangladesh imported approximately $565.6 million (Rs 5,063 crore) worth of sugar from India, vital for food consumption and processing industries.

Onions, Potatoes, Garlic: Everyday staples depend on Indian supply. Any interruption can spike prices.

Spices and Grains: Trade in these commodities reached $434.8 million (Rs 3,891 crore) in 2021-22, sustaining domestic consumption and the food industry.

Fruits and Vegetables: Fresh and processed produce comes primarily from India.

Cotton: Essential for Bangladesh’s garment industry, around 35% of India’s cotton exports go to Bangladesh.

Refined Petroleum, Plastics, Steel, Electrical Equipment: India exports these materials that are critical for manufacturing, construction and energy sectors.

Medicines And Medical Supplies: India is a major supplier for Bangladesh’s healthcare needs.

Why Bangladesh Relies On India

Geography plays a key 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, giving the country an economic advantage.

Trade And Economic Impact

Bilateral trade reached $15.9 billion in FY 2022–23, with Bangladesh exporting $2 billion to India. Indian exports were $14 billion in 2021, $13.8 billion in 2022 and $11.3 billion in 2023. Supply chain disruptions due to global factors, such as the Russia-Ukraine war, have also had an effect.

India has provided $8 billion in development assistance to Bangladesh over the last eight years, supporting roads, rail and port projects. Under then Prime Minister Sheikh Hasina (2009–July 2024), Bangladesh’s GDP rose from $123 billion to $455 billion and per capita income rose to $2,650 from $841.

Can Any Other Country Replace India?

China is a major investor in Bangladesh, with $7 billion through the Belt and Road Initiative and $22 billion in exports in 2023. However, experts say that 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 match. The textile sector, contributing 11% to GDP, heavily relies on Indian raw materials. India could impact Bangladesh strategically, though the situation would need to deteriorate severely for that to happen.”

Simply put, Indian supply is the lifeblood of Bangladesh’s economy. Any disruption could directly affect inflation, employment and GDP. Amid rising tensions, the Indian visa centre in Chattogram has been closed from Sunday until further notice, with Dhaka and two other centres already shut previously. Security has also been increased at the Indian Assistant High Commission office and visa application centre in Sylhet. India has urged Bangladesh to bring the perpetrators of a Hindu youth’s murder to justice.