{"id":8357,"date":"2025-05-24T12:05:25","date_gmt":"2025-05-24T12:05:25","guid":{"rendered":"https:\/\/ipp-news.com\/?p=8357"},"modified":"2025-05-24T12:05:25","modified_gmt":"2025-05-24T12:05:25","slug":"bangladesh-cancels-21m-defence-contract-with-indias-grse","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=8357","title":{"rendered":"Bangladesh cancels $21m defence contract with India\u2019s GRSE"},"content":{"rendered":"
Bangladesh has cancelled a $21 million defence contract with India\u2019s state-owned Garden Reach Shipbuilders and Engineers Ltd (GRSE), amid growing strain in bilateral relations.<\/p>\n

The contract, awarded in July 2024, was for an advanced ocean-going tug for the Bangladesh Navy, a vessel designed for deep-sea towing and salvage missions. GRSE, a public sector unit under India\u2019s Ministry of Defence, confirmed the cancellation in a stock exchange filing on May 21.<\/p>\n

According to The Hindu, GRSE stated that the cancellation was anticipated and followed \u201cmutual discussions\u201d with the Bangladesh government.<\/p>\n

The company added that the financial impact would be negligible, as the order represented just 0.8% of its \u20b922,680.75 crore ($2.7 billion) order book as of March 31, 2025.<\/p>\n

No official reason was given by Dhaka. However, as reported by Business Standard, analysts view the move as a possible retaliation for New Delhi\u2019s recent imposition of import restrictions on Bangladeshi goods.<\/p>\n

On May 18, India tightened controls at Integrated Check Posts in its northeastern region, affecting shipments of ready-made garments and processed foods.<\/p>\n

These measures followed India’s earlier decision to withdraw a transshipment facility that had enabled Bangladeshi goods to reach third countries via Indian territory.<\/p>\n

The diplomatic setback comes amid a broader shift in Bangladesh\u2019s foreign policy posture following the departure of Sheikh Hasina\u2019s administration in August 2024.<\/p>\n

The ocean-going tug, while modest in budgetary terms, had been a strategic symbol of India-Bangladesh defence cooperation. Its cancellation underscores a deterioration in that relationship.<\/p>\n

In a press release on May 22, GRSE said it had been selected as the lowest bidder for the Indian Navy\u2019s Next Generation Corvette (NGC) programme.<\/p>\n

The company, based in Kolkata, has delivered 111 warships to Indian maritime forces and friendly foreign navies, including missile and anti-submarine corvettes.<\/p>\n

India-Bangladesh tensions rise amid trade curbs and political crackdow<\/p>\n

India-Bangladesh relations have deteriorated in recent months due to escalating trade restrictions and political developments.<\/p>\n

India has restricted imports of Bangladeshi garments to select ports, impacting exports worth $700 million annually. It has also blocked Bangladeshi consumer goods at 11 northeastern land ports and ended a key transit facility for Bangladeshi exports to third countries via Indian routes.<\/p>\n

In response, Bangladesh halted yarn imports from India through land ports in mid-April.<\/p>\n

Despite being India\u2019s largest trading partner in the region during FY24, and India ranking as Bangladesh\u2019s second-largest export market, trade ties have cooled sharply.<\/p>\n

At the same time, Bangladesh\u2019s interim government has banned the Awami League\u2014the party of ousted Prime Minister Sheikh Hasina\u2014under anti-terrorism laws, citing security concerns.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Bangladesh has cancelled a $21 million defence contract with India\u2019s state-owned Garden Reach Shipbuilders and Engineers Ltd (GRSE), amid growing strain in bilateral relations. The contract, awarded in July 2024, was for an advanced ocean-going tug for the Bangladesh Navy, a vessel designed for deep-sea towing and salvage missions. GRSE, a public sector unit under […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-8357","post","type-post","status-publish","format-standard","hentry","category-english-news"],"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/8357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8357"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/8357\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}