India’s cotton industry will undoubtedly be severely impacted by the political unrest in Bangladesh, even though it may not have a major impact on trade. Bangladesh is the recipient of $2.4 billion worth of Indian cotton exports.
Bangladesh’s proportion of India’s total cotton exports increased from 16.8% in FY13 to 34.9% in FY24, based on data from the Ministry of Commerce. In FY24, one-fourth of India’s overall exports to the nation came from raw cotton.
Bangladesh accounted for more than twice as many cotton exports from India in FY24 as China, the country that imports the second-most Indian cotton. Bangladesh was the leading destination for Indian cotton exports. Bangladesh’s percentage in India’s exports has increased over the past ten years, despite the country’s share being relatively small.
With each making up a quarter of India’s overall exports, cotton and petroleum are the two main commodities propelling India’s exports to Bangladesh. India increased its product exports to the nation from 1.7% in FY13 to $11 billion in FY24 or 2.5 percent of total exports.
