India, B'desh cargo movement dips sharply

The once robust trade corridor between India and Bangladesh is reeling from a sharp 45% year-on-year contraction in cargo movement by rail, with the average daily rake count dropping to 0.92 in FY25 (less than one rake) from 1.64 in FY24. Another 20% decline has been recorded in cargo movement throughout the India-Bangladesh Protocol Route (IBPR) waterways.  Nearly 600 rakes transported various goods to Bangladesh in FY24. This came down to around 330 in FY25, with the fiscal marked by political upheaval and temporary trade suspensions along certain corridors and a lingering overhang of bilateral trade tensions. Bangladesh’s position as India’s largest trading partner in the Subcontinent, with total trade turnover reaching $12.90 billion in FY24, underscores the gravity of this contraction. India, in turn, is Bangladesh’s second-biggest export partner, accounting for 12% of its total exports, as per a report.

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