With Bangladesh slipping from the fifth to the tenth position among its largest export destinations between fiscals 2023-2024, India's export landscape has undergone a significant transformation. Coupled with fears of payment defaults, this decline stems from the substantial forex crisis being faced by Bangladesh currently.

During FY24, India’s merchandise exports to Bangladesh declined by 9.5 per cent Y-o-Y to $11.06 billion from $12.22 billion in FY23. As per industry experts, these exports are expected to decline further in the current fiscal year. Despite being a significant trade partner for India, exporters are exercising autonomy in their commercial decisions. They are adapting to the situation by redirecting goods typically destined for Bangladesh to alternate markets and exploring new destinations.

Acknowledging the need to offset the export deficit resulting from Bangladesh's forex crisis, the government is strategising to tap into other markets. India's exports to Bangladesh have plummeted from over $16 billion in 2021-22 to around $11 billion in 2023-24, necessitating a shift in focus towards other potential markets.