Strong Indian rupee makes China Dhaka's no.1 trade partner

Dhaka, (IANS) China is once again Bangladesh's number one trading partner, thanks to a strengthening Indian rupee.

Indian goods are facing tough competition from Chinese imports, trade officials and analysts told New Age newspaper Tuesday.

Sources in the office of the chief controller of exports and imports said that Bangladesh-China trade increased by 58 percent to $820 million in January-February.

Imports from China went up by 59 percent to $790 million in the period while exports amounted to $20 million with 35 percent year-on-year growth, said an official citing a Chinese government report.

Analyst pointed out that a massive rise in imports from China might have been caused by importers diverting their procurements to Beijing as the strong Indian rupee made procurements from India costlier.

He pointed out that Indian suppliers might have lost their competitiveness with China getting more orders from the Bangladeshi importers.

If formal trade is considered, India is the second largest source for industrial raw materials and consumer goods imported into Bangladesh.