Recent developments in South Asia suggest that Bangladesh may be drifting away from India and aligning more closely with China and Pakistan. The geopolitical shifts are becoming more evident through diplomatic moves, infrastructure projects, and growing economic tensions.
Bangladesh’s interim chief adviser, Muhammad Yunus, made headlines when he apologized to Pakistan for the events of 1971. This move sparked controversy, especially in India, where it was perceived as a disregard for historical sensitivities. Yunus also made a visit to Beijing, where he made a bold statement, referring to Bangladesh as the “only garden of the ocean” in the region, given northeast India’s landlocked status. This comment received criticism in Indian media and diplomatic circles.
China’s involvement in Bangladesh has deepened in recent months. One of the most concerning developments for India is China's interest in the revival of the abandoned World War II air base at Lunarat, located just 12 to 15 kilometers from the Indian border. Though the base has been inactive for decades, Chinese officials recently visited the site, which is only 135 kilometers away from the strategically sensitive Siliguri Corridor. The exact purpose of China’s interest in the base remains unclear, but its proximity to India has raised alarms in New Delhi.
Beyond military concerns, economic cooperation between China and Bangladesh is growing. Two Chinese firms are setting up new factories and a solar power plant in Rangpur. There are also reports of a planned satellite city being developed with Chinese assistance, indicating long-term economic collaboration.
Amidst these developments, economic ties between India and Bangladesh are experiencing turbulence. The Indian government has imposed new restrictions on imports from Bangladesh through land ports. According to a notification from the Directorate General of Foreign Trade, readymade garments from Bangladesh can now only be imported via the seaports of Nava Sheva and Kolkata, cutting off all land port access. Additional items such as fruits, carbonated drinks, processed foods, cotton waste, plastic goods, dyes, and furniture are also banned from entering India through any land customs stations or integrated check posts. These restrictions affect four key land routes and are seen as a retaliatory move.
This comes after Bangladesh’s interim government halted the import of onions from India and closed three land ports in April 2025. Earlier, in 2024, Bangladesh had imposed several export restrictions on Indian goods, adding to existing challenges such as inspection delays and non-tariff barriers. The country also implemented a transit fee of 1.88 taka per ton per kilometer on Indian goods passing through its territory.
In response, India withdrew the transshipment facility for Bangladeshi exports. More recently, India also banned textile imports from Bangladesh, intensifying the trade conflict between the two countries.
In another significant development, Bangladesh has reportedly canceled a $21 million contract with India's state-run shipbuilding company, Garden Reach Shipbuilders and Engineers (GRSE). The cancellation, while not officially explained, is seen as a reflection of growing diplomatic strain and a possible shift in defense procurement preferences away from India.
Disclaimer:
The information provided in this article is based on available reports and public statements as of May 2025. The views expressed do not reflect any official position and are meant solely for informational and analytical purposes. Readers are encouraged to verify facts independently before drawing conclusions.
