24/05/2025
Bangladesh has cancelled a $21 million defen_ce contract with India’s GRSE for an ocean-going tug, reflecting strained bilateral ties.
Though GRSE downplayed the financial impact, the move signals a deeper diplomatic rift amid India’s new trade restrictions on Bangladeshi goods and termin@tion of key transit facilities.
The cancelled contract, once a symbol of defe_nce cooperation, now marks a setback. Bangladesh has responded with its own trade curbs, halting yarn imports from India.
These tens_ions follow leadership changes in Dhaka and growing political and economic divergence.
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