There is no doubt about that.
I'd like to complement some more details here.
Bangladesh's exports to India are usually met with the so-called "hidden tarrifs" in the Indian market.
Another thing is that Indian consumers are highly ethnocentric. So much so, they'll buy a locally made product even though it is low quality than an imported one. Not a very attractive market if you ask me.
On another note, many in India, particularly in the media are saying that Bangladesh is on its way to become another Pakistan. They've been saying this ever since the 90's. They do claim that Bangladesh is a hotbed for terrorists.
True, or not, there are reasons why they do this. See, many American firms rely on India's IT industry to a significant extent. If the Indian IT firms stop providing service to the Americans, it'll create global losses worth billions.
Not saying that they are going to do it, but it does give them some leverage to tell the American public: "Hey, we are taking care of things in our neighborhood". It's a form of psychological warfare and media propaganda. Although, opinions of American public are of little relevance.
But however, if the US stops importing goods and services from India, China, or any country for that matter - their economies will collapse in 24 hours. So, Indians have little leverage even with their IT industry. We mustn't underestimate the power of American consumerism. It is huge and significant upon which many third-world/developing nations are very dependent.
The commitments of many smaller countries do matter. The thing is that with India and China rising, it'll undoubtedly make the "little guys" uncomfortable.
The US does officially support more regional connectivity within South Asia and South East Asia. But how will this happen? Who will pay $7.5 billion for the transit infrastructure in Bangladesh? What people don't see is that trade within SAARC is very little compared to the likes of ASEAN or even GCC.
Reserve Bank of India
http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113489.pdf
http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113471.pdf
And yet, we are dreaming about having this 'transit' all the way to Thailand and Malaysia.
Small countries individually do not really matter. But what should matter are many small countries. Little things do matter. If we make a mistake in a mathematical calculation, the result will turn out wrong. If we make a mistake in a programming project, it won't compile. If we make a mistake in a business deal, the client would not be happy.
When many little things come together, it becomes something big. And that matters.
It's possible to somehow rally those "little guys". Be it India or China. But the process is going very slowly. The US would need to adjust its strategic equation. Suffice to say,
those sagols ruling Bangladesh simply won't go anywhere.