Bangladesh cancels 180-crore defence deal with India amid strained ties

Bangladesh has cancelled a major defence deal worth Rs 180.25 crores with a Kolkata-based public sector shipbuilder amid strained ties with India, the company stated. Garden Reach Shipbuilders and Engineers Ltd. (GRSE), which operates under India's Ministry of Defence, informed the stock exchange on Wednesday. 

"We wish to inform you that the Government of the People’s Republic of Bangladesh has cancelled the order", it said in the official release. The cancelled deal involved the construction of an advanced ocean-going tug for Dhaka. 

The move comes in the wake of New Delhi's deteriorating ties with Dhaka as India recently revoked the transshipment facilities for Bangladeshi cargo exports to third countries. The decision followed remarks of Bangladesh interim government chief advisor, Muhammad Yunus. During a recent visit to China, Yunus described India's northeast states as "landlocked" and claimed that Dhaka is the "only guardian" of the ocean in the region. 

Amid the growing tensions, India imposed significant restrictions on imports from Bangladeshi goods on May 18. As per a Directorate General of Foreign Trade (DGFT) notification, no ready-made garments from Bangladesh will be allowed to enter India through Integrated Check Posts (ICPs) in the northeast.