India-Bangladesh Relations: The $ 21 million deal was signed between India’s leading shipbuilding company Garden Reach Shipbuilding and Engineers (GRSE) and the Government of Bangladesh in 2023. Under this deal, 800 -ton sea tug boat design and delivery were to be done for Bangladesh Navy. The deal was the first major contract in the credit line of $ 500 million to Bangladesh by India. Its purpose was to promote marine security, joint military exercises and cooperation in the defense sector. This deal has been canceled by the interim government of Bangladesh, which is headed by Mohammad Yunus.
The decision to cancel the deal was taken under the leadership of Mohammad Yunus, the head of the interim government of Bangladesh. There can be many political and strategic reasons behind this. In this, the change in the policy of the interim government after the coup of Sheikh Hasina government can be the main reason. Import ban on Bangladeshi goods from India, including increasing political tension with India, which has damaged business relations. This can also play an important role in cancellation of the deal. After canceling this deal, a political message has also been sent by Bagladesh towards India, which has increased the chances of further sourness in bilateral relations.
Impact on India’s strategy
India has made soft power and defense cooperation its primary weapon to create strategic balance in South Asia in recent years, but this discomfort of Bangladesh offers some clear threats for India, which the following is.
- Can become a sign of dissatisfaction in other neighboring countries.
- The way for China and Pakistan find a strategic place in Bangladesh may open.
- Marine security and monitoring schemes may be affected in the Bay of Bengal.
Current status of India-Bangladesh relations
Consider the current status of Indo-Bangladesh relations, differences between the interim government of Bangladesh and the army are at its peak. Army Chief General Walker Walker-e-Zaman has demanded elections till December 2025. Bangladeshi exporters are suffering heavy losses due to import ban from India. All these things together have created a wall of mistrust in the strategic relations of India-Bangladesh.