China expands military footprint with drone factory in Bangladesh: Why this alarms India’s security planners

File photo of Bangladesh's Interim Government Chief Adviser Muhammad Yunus and Chinese President Xi Jinping.

Bangladesh is building a drone factory with Chinese defence involvement, deepening China’s military presence near India. The project includes technology transfer and long-term cooperation, raising Indian concerns over regional security and strategic encroachment.

Did our AI summary help?

Bangladesh’s decision to set up a domestic unmanned aerial vehicle manufacturing facility with direct Chinese defence involvement has injected a new and unsettling element into South Asia’s security environment. Framed by Dhaka as a step toward self-reliance and modernisation, the project in reality marks a deeper military and technological embedding of China in India’s immediate neighbourhood.

Unlike routine arms purchases, this initiative creates a permanent defence-industrial footprint, involving technology transfer, infrastructure development and long-term operational presence. For New Delhi, the concern is not just the drones themselves, but the strategic intent behind Beijing’s expanding military ecosystem in Bangladesh. Coming amid Dhaka’s visible pivot toward China under its interim administration, the project reinforces fears of creeping militarisation along India’s eastern and northeastern flank.

What the agreement involves

The agreement was signed on January 27 between the Bangladesh Air Force and China Electronics Technology Group Corporation International, a Chinese state-owned defence electronics firm. The signing took place at Bangladesh Air Force headquarters in Dhaka Cantonment, signalling full institutional backing.

Bangladesh’s defence ministry said, “Under the agreement, BAF and CETC will jointly set up a facility to produce and assemble state-of-the-art UAVs.”

It added that the deal includes technology transfer and capacity building to enable Bangladesh to manufacture drones independently in the future.

The project, formally titled “Establishment of Manufacturing Plant and Transfer of Technology (ToT) for Unmanned Aerial Vehicles (UAVs),” was approved by the finance ministry after clearance from Chief Adviser Muhammad Yunus, who currently holds the defence portfolio. The Bangladesh Air Force will implement the project.

Cost and Chinese control

The total approved cost is Tk608.07 crore, around $55 million, funded entirely from the Bangladesh Air Force’s budget. Of this, Tk570.60 crore is allocated for imported Chinese infrastructure and technology.

CETC International is a subsidiary of China Electronics Technology Group Corporation, a sanctioned Chinese defence conglomerate involved in radars, electronic warfare, secure networks, UAVs and military software. Its presence raises concerns beyond manufacturing, particularly given its role in network-centric warfare systems.

What drones are likely to be built

While Dhaka has not officially named the UAV model, reports indicate it could be the CETC-developed XY-I MALE drone. Designed for surveillance, reconnaissance, electronic warfare and attack roles, the platform supports weapons including bombs and air-to-surface missiles.

CETC has claimed the drone can carry modular payloads for communications, intelligence and combat missions, enabling integration into broader military networks rather than standalone use.

China’s expanding military footprint in Bangladesh

The drone factory fits into a larger pattern of Chinese military penetration. Bangladesh already operates Chinese submarines, naval vessels, radars and aircraft. It is also reportedly negotiating a $2.2 billion deal for 20 J-10C fighter jets.

Between 2019 and 2023, Bangladesh accounted for about 11 per cent of China’s global arms exports. This project deepens that dependency by embedding Chinese systems into Bangladesh’s defence planning.

Why India is alarmed

India’s concern stems from geography and intent. Bangladesh shares a 4,096-kilometre border with India, including proximity to the Siliguri Corridor. MALE drones operating from bases like the proposed Bogra airbase could enhance surveillance and electronic intelligence gathering near Indian airspace.

Indian analysts warn that Chinese access to Bangladeshi military infrastructure could enable monitoring of sensitive regions, feeding into Beijing’s broader regional objectives.

With Yunus accelerating engagement with China since 2024, including major deals signed during his March 2025 Beijing visit, New Delhi increasingly views Bangladesh as another link in China’s expanding strategic arc across South Asia and the Bay of Bengal.

For India, the concern is no longer hypothetical. A Chinese-backed drone factory next door represents a tangible shift in the regional balance, one that blurs the line between cooperation and strategic encroachment.