India-Bangladesh Conflict: Bangladesh Government Cancels Defense Deal Worth $21 Million With Indian Company
India-Bangladesh Conflict: Amid rising tensions with India, neighbouring country Bangladesh has cancelled a $21 million defence deal. Bangladesh’s Yunus government has cancelled a $21 million transaction with the Indian company Garden Reach Shipbuilders and Engineers Ltd (GRSE). GRSE sent this information in a letter to the National Stock Exchange. GRSE had signed this agreement with the Bangladesh Navy to construct a tugboat in July 2024.
Why Bangladesh Cancelled This Deal?
Bangladesh took this decision after India limited ready-made garment imports from Bangladesh to only Kolkata and Nhava Sheva ports. Relations between the two countries have strained since Prime Minister Sheikh Hasina’s removal from power. The acquisition of an 800-ton ocean tugboat marked the first big deal under India’s $500 million credit line for defence purchases.
