Published: 01:38 AM, 15 September 2026
Bangladesh Must Work Harder on Widening South Asian Trade
Bangladesh must make greater efforts to expand trade with its South Asian neighbors as access to traditional Western markets becomes increasingly uncertain and competitive. For decades, the United States and European Union have been among the most important destinations for Bangladeshi exports, particularly garments. But changing trade policies, stricter standards, geopolitical tensions and rising competition are creating new challenges for exporters.
This situation makes stronger regional trade more important than ever. Bangladesh shares borders with India and Myanmar and is geographically close to Nepal, Bhutan and Sri Lanka. Yet intra-regional trade in South Asia remains far below its potential because of high tariffs, complicated customs procedures, weak transport connectivity and political differences.
Bangladesh should take a more ambitious approach to regional economic integration. Greater trade with neighboring countries could provide new markets for Bangladeshi manufacturers while reducing excessive dependence on a limited number of Western destinations.
India should be a central part of this strategy. As the largest economy in South Asia, India offers a huge consumer market for Bangladeshi products. Bangladesh can increase exports of pharmaceuticals, processed foods, leather goods, ceramics, jute products, plastics, light engineering products and other manufactured goods. At the same time, improved connectivity could reduce transportation costs and facilitate regional supply chains.
Trade with Nepal and Bhutan also deserves greater attention. Bangladesh can potentially export medicines, clothing, food products and manufactured goods while importing electricity, agricultural products and other commodities. Better road, rail and waterway connections would make such trade more commercially viable.
Sri Lanka and the Maldives also offer opportunities in areas such as garments, pharmaceuticals, food products, construction materials and services. Bangladesh should therefore pursue practical trade agreements rather than relying mainly on diplomatic goodwill.
Another important opportunity lies in regional value chains. Instead of producing every component domestically, Bangladeshi companies could cooperate with businesses in neighboring countries to build cross-border production networks. Such cooperation could be particularly useful in textiles, pharmaceuticals, agricultural processing, information technology and light engineering. Regional supply chains would help Bangladeshi businesses become more efficient and could attract foreign investors seeking access to the broader South Asian market.
Bangladesh should also make better use of its geographic position. The country can potentially serve as a bridge between South Asia and Southeast Asia. Improved connections with India's northeastern states, Nepal and Bhutan could turn Bangladeshi ports and transport corridors into important regional trade routes. This would generate revenue from logistics while strengthening Bangladesh's strategic economic importance.
