India tops Bangladesh’s outward FDI destinations

Bangladesh is scrambling to attract foreign investment to boost its economy, even as Bangladeshi companies continue to send capital abroad-with India emerging as the biggest single-country destination for outward foreign direct investment in 2024.

Bangladesh Bank data show that Bangladeshi investors sent a gross $31.98 million to India in 2024, while $7.58 million returned, leaving a net outward FDI of $24.40 million.

India was far ahead of the other destinations. The United Arab Emirates (UAE), the second-largest destination, received a gross $14.26 million, while only $0.01 million came back, leaving a net outflow of $14.25 million.

The BB data shows Hong Kong ranked third with $18.93 million in gross outflows and $11.80 million in inflows, resulting in a net outflow of $7.13 million. Ireland ranked fourth with gross outflows of $2.22 million, inflows of $0.14 million and a net outflow of $2.08 million.

South Africa came fifth, with a net outflow of only $0.69 million, according to Bangladesh Bank’s FIED (Foreign Investment and External Debt) Management Cell.

The figures show why looking only at the net number can hide the actual movement of money. Bangladesh’s total outward FDI in 2024 was $90.70 million in gross outflows, while $83.54 million flowed back into the country. After adjusting for those inflows, the country’s net outward FDI was only $7.16 million.

In other words, Bangladeshi companies moved much more money across borders than the final $7.16 million net figure suggests. India alone accounted for more than one-third of Bangladesh's gross outward FDI in 2024. Its $31.98 million gross outflow was also more than double the UAE's $14.26 million.

The pattern becomes even more interesting when the figures are compared with 2025.

Bangladesh Bank's latest full-year data show that the UAE overtook India as the largest destination in 2025, receiving $20.78 million in net outward FDI. 

The UK came second with $7.70 million, India third with $4.73 million, followed by Malaysia at $2.82 million and Ireland at $2.13 million.

That means India's net outward FDI fell sharply from $24.40 million in 2024 to $4.73 million in 2025, a decline of about 81 per cent.

But India again moved to the top in the first quarter of 2026. During January-March 2026, Bangladesh recorded $3.61 million in net outward FDI to India, according to the latest Bangladesh Bank data. That made India the largest destination during the quarter, ahead of the UAE at $2.63 million and the United States at $1.13 million.

The nature of the investment in India is also notable. Of the $3.61 million net outward FDI to India in the first quarter, $2.78 million was classified as Mining & Quarrying.

This is not entirely new. Bangladesh Bank's 2024 data show that mining and quarrying was already one of the major sectors of Bangladesh's outward investment, with $8.91 million in gross outflows and $6.52 million in inflows, leaving a net $2.39 million.

The data also show how small Bangladesh's outward investment remains compared with the size of its economy. Bangladesh Bank says the country's outward-FDI stock stood at $322.26 million at the end of 2024, before rising to $331.08 million at the end of 2025.

For Bangladesh, therefore, India remains an important overseas investment market even though the overall amount is still very small. 

The sharp rise in India-bound investment in 2024, its fall in 2025 and its return to the top in early 2026 show that Bangladesh's outward investment is still concentrated in a few destinations and can change significantly from one year to another.

A senior central banker said Bangladesh's outward FDI remains small and concentrated in a few countries. "India stands out because Bangladeshi companies have long business links there, including limestone mining in Meghalaya, which supplies a key raw material for the cement industry," he said.

He said investment in the UAE is mainly linked to financial services, while the US-bound investment is largely in chemicals and pharmaceuticals. "So the destinations reflect different business needs rather than a broad overseas investment drive," he said.