Dhaka: Commerce Minister Khandakar Abdul Muktadir announced today that the government is prioritizing the expansion of the country's overall export capacity as a strategy to reduce the substantial trade imbalance with India and China. This announcement was made in response to a supplementary query from opposition Jamaat-e Islami lawmaker M Abdul Baten of Dhaka-16 during a question-and-answer session at the Jatiya Sangsad.
According to Bangladesh Sangbad Sangstha, the commerce minister acknowledged the significant trade gap with India and China but emphasized the necessity of focusing on enhancing the country's comprehensive export capabilities rather than treating it as a nation-specific issue. Muktadir highlighted that raising the country's exportability is crucial in addressing the trade imbalance.
To bolster the nation's export capabilities, the government has identified several key sectors with promising export potential, including leather, jute, shipbuilding, light engineering, and semiconductors. Muktadir mentioned that efforts are underway to increase export capacity through favorable policies and new investments, while also working to develop sectors that have not yet reached their full potential.
Discussing the trade gap with India, Muktadir noted that the trade deficit in the 2025-26 fiscal year has widened compared to the previous year. The bilateral trade between Bangladesh and India currently stands at nearly US$12.7 billion, with Bangladesh exporting approximately US$1.89 billion worth of goods to India. The remainder of the trade volume involves imports to Bangladesh from India.
He further explained that while India has export potential in several sectors, there are restrictions on bilateral trade from both Indian and Bangladeshi sides. Muktadir referenced a recent visit by an Indian trade representative group to Bangladesh, during which a proposal was made to form a joint taskforce for infrastructure development between Indian and Bangladeshi traders, a proposal that Bangladesh has agreed to.
In addressing the trade deficit, Muktadir pointed out that despite the higher trade deficit with India, private sector traders continue to import goods from India due to business benefits.