India was the first country to establish diplomatic relations with Bangladesh by recognizing it as a separate and independent state immediately after its independence of the later in December 1971.
Bangladesh and India share a significant trade partnership in South Asia, with Bangladesh being India's largest trade partner in the region. India’s trade with Bangladesh has significantly grown over the years, with total trade reaching to US$ 14.23 billion in 2022-23 despite challenges posed by the Covid-19 pandemic.India has been able to maintain positive trade balance with Bangladesh, reflecting stable trade relationship and growing economic ties between the two nations.
The trade in the engineering sector between India and Bangladesh has been flourishing. India has emerged as a key supplier of engineering goods to Bangladesh, encompassing a wide range of products. India’s engineering exports to Bangladesh stood at US$ 2.54 billion in 2022-23. The trade surplus demonstrates India's ability to successfully meet the demands of Bangladesh's engineering sector while enhancing the overall economic stability of the trade relationship.
Major items exported to Bangladesh are industrial machinery, auto components/parts, iron and steel, aluminum and its products, electrical machinery, products of iron & steel, motor vehicles, etc. while some of the major imported engineering items from Bangladesh are iron and steel, refrigeration machinery and parts, Cranes, Lifts & Winches, copper and its products, etc.
The Government of India has setup a target for India’s engineering exports to Bangladesh to reach 2.94 Billion USD in year 2023-24.