In a significant move, Bangladesh has pulled out of a $21 million military contract with India’s Garden Reach Shipbuilders & Engineers (GRSE). The deal, which involved the purchase of an ocean-going tugboat, has been cancelled as political and trade tensions between the two nations continue to rise. While GRSE claims the financial impact will be minimal, the cancellation is seen as a reflection of the strained diplomatic ties between Dhaka and New Delhi.

What was once considered a symbol of defence collaboration now serves as a reminder of the growing friction between the two countries. Recent actions by India—such as trade restrictions on Bangladeshi goods and the suspension of crucial transit agreements—have worsened the situation.

In response, Bangladesh has taken its own measures, notably suspending yarn imports from India. This decision could impact the textile industries in both nations, which rely on cross-border trade.

Experts suggest that these developments reflect deeper political shifts in Bangladesh’s leadership. The cancelled defence deal, combined with mounting trade disagreements, points to a cooling relationship and a potential shift in regional partnerships.

Disclaimer: This article is based on publicly available sources and is meant for informational purposes only. The featured image is used solely for illustrative representation.