Bangladesh Inks Defence Deal With China To Set Up Drone Plant: What Does This Mean For India? Exclusive

Last Updated:January 28, 2026, 22:06 IST

The facility will be located near New Bogra Airbase, placing Chinese-funded military technology in close proximity to India's sensitive northern borders and the Siliguri Corridor

The government-to-government deal, signed between the Bangladesh Air Force and state-owned China Electronics Technology Group Corporation, aims to have the drone plant operational by late 2026. (Image: News18)

In a development that has raised security alarms in India, Bangladesh has finalised a significant defence agreement with China to establish a state-of-the-art facility to manufacture advanced drones.

This government-to-government (G2G) deal, signed between the Bangladesh Air Force (BAF) and state-owned China Electronics Technology Group Corporation (CETC), aims to have the drone plant operational in the Bogra region by late 2026.

While the Muhammad Yunus-led interim government in Bangladesh maintains that these aircraft are intended for humanitarian aid and disaster management, the strategic implications of the plant’s location have raised an alarm within the Indian security establishment. The manufacturing facility will be located near the New Bogra Airbase, placing Chinese-funded military technology in close proximity to India’s sensitive northern borders and the Siliguri Corridor, often referred to as the ‘Chicken’s Neck’.

According to Indian security sources, the integration of Chinese sensors, software, and data links so close to the border is a major intelligence risk, facilitating high-resolution imagery and signals data collection.

This move furthers a perceived encirclement policy, fitting into the long-standing ‘String of Pearls’ concerns where Chinese military cooperation with neighbours is seen as a strategic threat to Indian sovereignty, the sources said.

WHAT IS THE UAV PACT ALL ABOUT?

The partnership involves a full technology transfer from CETC to the BAF, marking a shift from mere procurement to domestic production.

Under this agreement, Bangladesh and China will jointly set up a facility to produce and assemble advanced drones with CETC providing the necessary capacity-building support to enable Dhaka to eventually design its own UAVs.

Initially, the plant will focus on manufacturing two primary categories of aircraft: medium altitude long endurance (MALE) UAVs, which are designed for extended surveillance and strike missions, and vertical takeoff and landing (VTOL) UAVs that offer flexibility for quick deployment across varied terrains.

A statement from the BAF read that the ultimate goal is to achieve indigenous UAV designs by December. This capability will allow Bangladesh to independently sustain its fleet for both military operations and surveillance close to its borders.

IS THIS A STRATEGIC PIVOT ON PART OF BANGLADESH?

This deal represents a major pivot in regional diplomacy, signalling Bangladesh’s increasing reliance on Chinese defence infrastructure at the expense of traditional Indian partnerships.

For decades, China has been Bangladesh’s primary supplier of military hardware and this latest agreement cements that bond. Reports indicate that the BAF is also finalising a USD 2.2 billion deal to procure 20 Chengdu J-10C ‘Vigorous Dragon’ multirole fighter jets to replace its ageing fleet, further deepening the military ties between Dhaka and Beijing.

The timing and nature of the deal have particularly concerned the Indian security establishment, which noted that the current interim government appears to be moving away from Indian dependence. There are additional concerns that the local production of these drones could eventually lead to the export of such technology to hostile groups in India’s northeast, the sources said.

They said with Yunus reportedly highlighting maps of a “Greater Bangladesh", which includes Indian territories, New Delhi views the placement of advanced Chinese surveillance tech in the hands of a sensitive neighbour as a move by a historically hostile strategic actor.

The signing ceremony, held at the BAF headquarters in Dhaka Cantonment, was attended by high-ranking officials including Air Chief Marshal Hasan Mahmood Khan and Chinese ambassador Yao Wen.

News world Bangladesh Inks Defence Deal With China To Set Up Drone Plant: What Does This Mean For India? Exclusive

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