Dhaka (nytoday) — In a development seen as a diplomatic setback for India, Bangladesh has officially cancelled the proposed Indian Economic Zone planned for Chittagong and has decided to develop a Defence Economic Zone on the same site instead.
The decision was approved during a meeting of the governing board of the Bangladesh Economic Zones Authority (BEZA), according to BEZA Executive Chairman Chaudhry Ashiq Mahmood bin Haroon, who shared the details at a press conference in Dhaka. He confirmed that the land earlier allocated for the Indian-backed project will now be utilised for defence-related industrial development.
Chaudhry Ashiq Mahmood said the move reflects Bangladesh’s strategic focus on strengthening its domestic military and defence manufacturing capabilities. He explained that discussions on producing weapons and defence equipment have been ongoing for a long time, driven by rising global demand and the country’s own security requirements.
He added that the Defence Economic Zone project is being jointly developed by the Armed Forces Division, the Ministry of Defence, and the Office of the Chief Advisor, highlighting its national importance.
According to officials, around 850 acres of land had been reserved for the Indian Economic Zone until June last year, after which the project was eventually cancelled. The same land will now form the foundation of the new defence-focused zone.
Chaudhry Ashiq Mahmood also revealed that Bangladesh is holding consultations with several friendly countries regarding cooperation in establishing the Defence Economic Zone. However, he noted that it is too early to determine which specific military equipment will be manufactured, as decisions will be made based on national needs and market demand.