Bangladesh(The COW News Digital)Bangladesh has announced the cancellation of the Indian Economic Zone project in Chattogram, marking a significant shift in its development priorities as authorities move forward with plans to establish a Defense Economic Zone at the same location.
The decision was confirmed by the Bangladesh Economic Zones Authority (BEZA) during a press conference in Dhaka. BEZA Executive Chairman Chowdhury Ashik Mahmud Bin Harun stated that the governing board of the authority had formally approved the cancellation of the Indian-backed project and agreed to replace it with a defense-focused economic zone.
According to BEZA officials, the move is aimed at strengthening Bangladesh’s domestic capacity in military and defense-related industries. The new Defense Economic Zone is expected to support the production of arms, equipment, and related supplies, sectors that officials say have seen growing global demand in recent years.
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Chowdhury Ashik Mahmud explained that discussions on developing Bangladesh’s military industrial base had been underway for a long time. He said the country needs to reduce reliance on foreign suppliers and gradually move toward meeting its defense requirements through local production. The initiative, he added, is being jointly coordinated by the Armed Forces Division, the Ministry of Defence, and the Office of the Chief Adviser.
The BEZA chairman revealed that around 850 acres of vacant land have been identified for the project. This land had previously been allocated to the Indian Economic Zone until June last year, after which the plan was put on hold and later scrapped entirely. The area will now be incorporated into Bangladesh’s master development plan as a Defense Economic Zone.
Officials clarified that the decision does not immediately specify what type of military equipment will be manufactured at the site. The nature of production will be determined based on national needs and market demand. Authorities also indicated that consultations are ongoing with friendly countries regarding potential cooperation, technology transfer, and investment in the defense sector.
The cancellation of the Indian Economic Zone has drawn regional attention, as the project was initially seen as a key symbol of economic cooperation between Bangladesh and India. Analysts believe the shift reflects Dhaka’s evolving strategic and economic priorities, particularly its focus on self-reliance in sensitive sectors.
Experts note that defense-oriented economic zones can attract high-value investment, skilled labor, and advanced technology, but they also require strict regulatory oversight and long-term planning. If implemented successfully, the project could enhance Bangladesh’s industrial base and strengthen its defense preparedness.
The announcement highlights a broader trend in which countries are reassessing foreign-backed projects in favor of initiatives aligned with national security and strategic interests. Further details about timelines and implementation are expected to be shared in the coming months.
