A $21 million deal was signed between India's leading shipbuilding company Garden Reach Shipbuilding and Engineers (GRSE) and the bangladesh government in 2023. Under this deal, an 800-tonne marine tug boat was to be designed and delivered for the bangladesh Navy. The deal was the first major contract of the $500 million defense purchase credit line given by india to Bangladesh. Its aim was to promote maritime security, joint military exercises and cooperation in the defense sector. The deal has been canceled by the interim government of bangladesh, which is led 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 may be many political and strategic reasons behind this. The main reason for this could be the change in the policy of the interim government after the coup of the Sheikh Hasina government. Growing political tensions with india, including India's import ban on Bangladeshi goods, which has damaged trade relations, could also play an important role in the cancellation of the deal. By cancelling this deal, bangladesh has also sent a political message to india, which has increased the possibility of further souring of bilateral relations.
Impact on India's strategy
India has made soft power and defense cooperation its primary weapon to create a strategic balance in South Asia in recent years, but this discomfort of bangladesh presents some clear threats to india, which are as follows.
It can become a signal of discontent in other neighboring countries.
China and pakistan may get a strategic place in Bangladesh.
Maritime security and surveillance plans in the Bay of bengal may be affected.
Current state of India-Bangladesh relations
If we look at the current state of India-Bangladesh relations, differences between the interim government of bangladesh and the army are at their peak. army Chief General Walker-uz-Zaman has demanded elections by december 2025. Bangladeshi exporters are suffering huge losses due to the import ban from India. All these things together have created a wall of mistrust in the strategic relations between india and Bangladesh.
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