Bangladesh has urged India to maintain preferential market access for its exports after the country graduates from the United Nations’ Least Developed Country (LDC) category, seeking to minimise disruptions to bilateral trade and protect its export competitiveness.
The transition from LDC status is expected to affect Bangladesh’s existing trade advantages, including preferential tariff treatment available in several markets. Continued access to the Indian market on favourable terms is therefore a key concern for Dhaka as it prepares for the change in its trade status.
India is an important trading partner for Bangladesh, supplying a wide range of goods, including cotton, machinery, chemicals, food products and other industrial inputs. Bangladesh, in turn, exports products such as garments, textiles, jute goods, leather products and other manufactured items to the Indian market.
The withdrawal or reduction of preferential tariff benefits could increase costs for some Bangladeshi exporters and affect their competitiveness against suppliers from other countries. Maintaining favourable access could help businesses adjust to the new trading environment and support the continuity of cross-border supply chains.
For India, the issue presents an opportunity to strengthen economic cooperation with Bangladesh while balancing domestic industry interests and existing trade commitments. Any continuation of preferential access would depend on bilateral discussions and the applicable trade arrangements.
Bangladesh’s request comes amid broader efforts to prepare its economy for the post-LDC period through export diversification, improved productivity and stronger trade partnerships.
The outcome of discussions with India could have implications for bilateral commerce, regional supply chains and trade relations across South Asia as Bangladesh prepares for its transition out of the LDC category.