The diplomatic ties between India and Bangladesh are facing rising tensions under the newly formed Yunus Government. Surrounding this backdrop, a claim has been shared by social media users about India and Bangladesh trade ties. A user named Asad Nasir shared on Twitter claiming, “India has suffered an $18 billion loss as Bangladesh switches its trade route”
Following the above claim, multiple users have shared the homogeneous claims which can be viewed here, here, and here.
Fact Check
The claim was found to be false after investigation. During the process, we didn’t find any official statement or media report mentioning Bangladesh switching trade routes entirely away from India.
According to a report from Trading Economies and The Observatory of Economic Complexity, in 2022, India exported $13.8 billion worth of goods to Bangladesh, while Bangladesh exported $2 billion worth of goods to India. The main products that India exported to Bangladesh were Refined Petroleum ($1.37B), Non-Retail Pure Cotton Yarn ($1.37B), and Raw Cotton ($942M). Over the past 5 years, the exports of India to Bangladesh have increased at an annualized rate of 14%, from $7.17B in 2017 to $13.8B in 2022.
Furthermore, the Economic Times also reported, “ India’s exports to Bangladesh reached a record level of US$14 billion in 2021 before declining to US$13.8 billion in 2022 and US$11.3 billion in 2023.” It cites multiple challenges, like high inflation, Russia—Ukraine war-induced supply chain disruptions, and the Bangladesh economy post-COVID period.
Conclusion
Thus from the fact check it is clear that the claim that India suffered an $18 billion loss due to Bangladesh switching its trade routes is false. No evidence from official reports or credible sources supports this assertion. Furthermore, bilateral trade continues, albeit at slightly reduced levels due to temporary regional disruptions and tensions.
