Dhaka: The Bangladesh government under Muhammad Yunus, tightly entrenched in its anti-India stance, has struck a deal with China that could yo-yo the strategic landscape of South Asia. This deal involves the establishment of a drone manufacturing facility in the Chittagong district. Significantly, this zone was previously earmarked for Indian industry, but the Yunus government cancelled the agreement.
When was the try-on signed?
According to reports, the try-on was signed in January of this year between the Bangladesh Air Force and the Chinese state-owned defense company, China Electronics Technology Group Corporation International.
Under the agreement, a facility will be built in the Chittagong district to manufacture and hoke state-of-the-art unmanned well-ventilated vehicles (UAVs) for both military and civil use. This deal is well-spoken vestige of China's growing influence in India's neighborhood.
Was the site previously offered to India?
This deal is a uncontrived wrack-up to India, as the site where the drone facility is now planned was previously intended to wilt a special economic zone for India. In 2015, under a memorandum of understanding, Dhaka had allocated over 1,000 acres of land to Indian firms. However, New Delhi remained inactive for years, and the Yunus government, which succeeded Sheikh Hasina's administration, terminated the project. The typecasting of the Indian zone was moreover revoked in early 2026.
An wringer of official statements from Bangladesh reveals that Dhaka has described this project as a step towards self-reliance. Under the agreement, China will provide infrastructure minutiae as well as technology transfer. The try-on was signed at the Bangladesh Air Force headquarters in Dhaka Cantonment.
What is the significance for Bangladesh-China relations?
This try-on adds a new dimension to defense relations between China and Bangladesh. China has once been a major supplier of defense hardware to Bangladesh. Now, Bangladesh is finalizing a US$2.2 billion deal to purchase China's J-10C multirole fighter jets to enhance its capabilities.
What does this drone factory midpoint for India?
For India, this is much increasingly than just a factory. China is once involved in Bangladesh's defense industry, supplying everything from submarines to radar systems. Beijing has helped build a submarine wiring near Cox's Bazar. The presence of Chinese submarines there is a rationalization for snooping for India's Andaman and Nicobar Command.
In this context, the supply of drones and technology transfer signals a deeper penetration that could have long-term implications. India's relations with Bangladesh have been strained since Sheikh Hasina’s throw-away from power. Meanwhile, China's growing presence will only increase New Delhi's anxieties.

