China to Set Up Drone Factory in Bangladesh, Expanding Strategic Reach Near India

Dhaka: In a development that could reshape South Asia’s strategic landscape, China is set to establish a drone manufacturing facility in Bangladesh, raising concerns for India. The project is being pursued under the government of Mohammed Yunus, despite opposition from India in previous years.

Strategic Location in Chattogram

The new facility will be located in Chattogram district, an area that was previously earmarked for Indian industrial investment. In 2015, Dhaka had allocated over 1,000 acres of land under a memorandum of understanding for Indian companies, but delays from New Delhi and subsequent policy changes by Yunus’ administration led to the cancellation of the Indian project.

Now, the area will host a state-of-the-art unmanned aerial vehicle (UAV) production and assembly facility, capable of producing drones for both military and civilian purposes. Official statements indicate that the facility is part of Bangladesh’s push for self-reliance, while China will provide infrastructure support and technology transfer. The agreement was signed at the Bangladesh Air Force headquarters in Dhaka Cantonment in January 2026, in partnership with China Electronics Technology Group Corporation International, a Chinese state-owned defense firm.

Deepening Bangladesh-China Defense Ties

This agreement marks a significant step in Bangladesh-China defense cooperation. China is already a key supplier of military hardware to Bangladesh. In addition to drones, Dhaka is reportedly finalizing a $2.2 billion deal for J-10C multirole fighter jets from Beijing.

China has also contributed to Bangladesh’s submarine and radar programs, including assistance in establishing a submarine base near Cox’s Bazar. The presence of Chinese submarines in Bangladesh waters has been a concern for India’s Andaman and Nicobar Command, and the addition of drones and advanced technology indicates deeper Chinese strategic penetration.

Implications for India

For India, the factory represents more than just a production facility. It signals China’s growing influence in Bangladesh’s defense industry, particularly in areas close to India’s eastern borders. The new drone facility, combined with technology transfer and military hardware cooperation, could shift the regional balance of power and complicate India’s security considerations.

With strained relations between India and Bangladesh following Sheikh Hasina’s departure from power, China’s expanding footprint in Dhaka adds an additional layer of strategic challenge for New Delhi in the coming years.