Once a go-to destination for Bangladeshi shoppers, travellers, and medical tourists, India is losing its lustre as Bangladeshi credit card holders sharply cut back on spending there, redirecting their wallets to the United States, United Kingdom, and Saudi Arabia.
This dramatic shift, fuelled by diplomatic tensions, visa restrictions, and evolving travel preferences, signals a new chapter in how Bangladeshis are spending abroad—and at home. As geopolitical ripples reshape consumer habits, Bangladesh’s credit card landscape offers a fascinating glimpse into a nation adapting to a changing world.
The numbers tell a stark story. According to Bangladesh Bank’s latest data, overseas credit card spending by Bangladeshis dipped to Tk 361 crore in March 2025, down 6.25% from February’s Tk 385 crore and a whopping 28% lower than March 2024’s Tk 503 crore. The sharpest decline is in India, where spending plummeted 72.26% from Tk 106 crore in March 2024 to just Tk 27.60 crore this year. Cities like Kolkata, Delhi, Darjeeling, Sikkim, and Meghalaya—once magnets for Bangladeshi tourists and shoppers—are seeing far fewer taka flow their way.
What’s driving this nosedive? Analysts point to a perfect storm of factors. Since the fall of the Sheikh Hasina government on August 5, 2024, India has suspended tourist visas for Bangladeshis, with no clear timeline for resumption.
Indian High Commissioner Pranay Verma cited staff shortages at the embassy, noting that only urgent visas – primarily for medical or third-country travel – are being processed.
Add to that India’s recent trade restrictions, including bans on certain Bangladeshi exports and limits on transit through Indian territory, and the result is a near-freeze on travel to India. “Diplomatic tensions have made India less accessible,” says Arif Hossain Khan, Executive Director and spokesperson for Bangladesh Bank. “Bangladeshis are simply looking elsewhere.”
As India fades, other destinations are basking in Bangladeshi spending. The United States has surged to the top, with credit card transactions climbing to Tk 57.40 crore in March 2025, up from Tk 52.30 crore in February. The United Kingdom follows, with spending rising from Tk 30 crore to Tk 36 crore over the same period. Saudi Arabia, a hub for religious travel like Hajj, saw a notable jump from Tk 24 crore to Tk 35 crore, reflecting its growing appeal.
This redistribution isn’t random. “Bangladeshis are diversifying their travel and spending for business, education, medical treatment, and personal needs,” Khan explains.
The US and UK, with their robust education systems and healthcare facilities, are drawing wealthier Bangladeshis, while Saudi Arabia’s religious significance pulls in pilgrims.
Social media chatter on X highlights this shift, with users noting increased Bangladeshi presence in Western and Middle Eastern hubs, from New York shopping sprees to London medical visits.
It’s not just India feeling the pinch. Thailand, another long time favourite for Bangladeshi tourists, saw credit card spending nearly halve from Tk 46 crore in February to Tk 22 crore in March.
Stricter visa policies and shifting preferences may be at play, as Bangladeshis explore new destinations or prioritize domestic spending amid global uncertainties.
While overseas spending dips, Bangladeshis are splashing out at home like never before. Domestic credit card transactions soared to Tk 3,755 crore in March 2025, a 26.52% leap from February’s Tk 2,968 crore. From departmental stores to clothing, pharmaceuticals, and service bill payments, locals are fuelling a retail renaissance. Cash withdrawals were the only sector to buck a slight November dip, underscoring a reliance on liquidity. Visa dominates with 73% of transactions, followed by Mastercard (18%) and American Express (9%), cementing their grip on Bangladesh’s payment ecosystem.
The pivot in spending reflects more than just travel woes. Geopolitical strains, particularly with India, have forced Bangladeshis to rethink their habits. “We’re seeing a natural rebalancing,” Khan says. “Where once a single country dominated, now Bangladeshis are spreading their spending globally.” Economic factors, like the rising cost of international travel, may also be pushing consumers to shop locally, where their taka stretch further.
Cultural and personal priorities are evolving, too. Young Bangladeshis, eyeing education and career opportunities, are flocking to the US and UK.
Religious travellers are boosting Saudi Arabia’s numbers, while domestic retail therapy fills the gap left by restricted travel. Posts on X capture this sentiment, with users praising Bangladesh’s growing mall culture and online shopping platforms as alternatives to cross-border trips.
As global dynamics shift, Bangladesh’s credit card holders are proving adaptable, redirecting their spending to align with new realities. India’s loss is the gain of Western and Middle Eastern markets, but the domestic surge suggests a deeper story of resilience and self-reliance.
Source: UNB