Bangladesh cancels $21m warship contract with India

In a tit-for-tat reflecting worsening of ties between the two neighbours, Bangladesh has cancelled $21 million worth contract with India’s Kolkotta-based shipyard Garden Reach Shipbuilders & Engineers Ltd (GRSE) for manufacturing of an ocean-going tug for its navy.

The GRSE officially accepted that on Thursday but stated that it was not any setback to their fiscal health. It’s on “anticipated lines”, the order for an ocean-going tug for Bangladesh stands cancelled based on “mutual discussions” between us, the GRSE said.

The ocean-going tug is a specialised vessel meant for long-distance towing and salvage operations in open waters.

“This order though would not have impact on GRSE’s finances as the order is worth only US$ 21 million (approximately ₹179.75 crore) and would have contributed a mere 0.8% to GRSE’s existing order book of ₹22,680.75 crore as on March 31, 2025,” a statement issued by the state-owned shipyard read.

The diplomatic and security relations between the two countries nosedived post former Bangladesh Prime Minister Sheikh Hasina landed in India after she fled her country on August 5, 2024.

This is the latest of the measures Bangladesh took to possibly India withdrawing transhipment facility for exports to third countries.

Now, Bangladesh is openly relying on China and Pakistan for its defence and security needs.

https://x.com/Gp_bangladesh/status/1925537580025843776