Strategic importance of Bangladesh’s Mongla Port, as Dhaka hands key project to China, ending India deal

During Bangladesh's Prime Minister Tarique Rahman's first state visit to Beijing in June 2026, Bangladesh signed a Memorandum of Understanding with China Civ...

What Happened

During Bangladesh's Prime Minister Tarique Rahman's first state visit to Beijing in June 2026, Bangladesh signed a Memorandum of Understanding with China Civil Engineering Construction Corporation to develop the China-Bangladesh Mongla Port Economic Zone, adjacent to Mongla — Bangladesh's second-largest seaport.
The project had previously been allocated to the Indian-nominated Hiranandani Group under a bilateral framework dating from 2015; a formal MoU was signed with the Indian side in 2022, but the company did not begin construction within the required two-year period.
Bangladesh's interim administration delisted the Indian project in 2025, and Bangladesh Economic Zones Authority subsequently signed with the Chinese counterpart.
India had invested approximately $115 million from its line of credit into Mongla Port and, separately, had secured operational rights to a terminal there through India Ports Global Ltd. in May 2024.
This follows Bangladesh's earlier cancellation of a separate Special Economic Zone allocation to India in Chittagong in February 2026, which was then awarded to China for drone manufacturing.

Static Topic Bridges

Mongla Port: Geography and Strategic Significance

Mongla is Bangladesh's second-busiest seaport, located in Bagerhat district, Khulna division, at the confluence of the Pasur River and Mongla River, approximately 100 km north of the Bay of Bengal. The port is surrounded by the Sundarbans — the world's largest mangrove forest and a UNESCO World Heritage Site. Its proximity to Kolkata (less than 200 km) and the Sundarbans makes it a critical node in South Asian maritime connectivity.

Second-largest seaport of Bangladesh after Chittagong (Chattogram)
Surrounded by the Sundarbans — shared mangrove ecosystem between India and Bangladesh
Provides strategic access to India's northeastern states (Assam, Tripura, Meghalaya, and others)
Since 2018, India has used both Mongla and Chittagong ports to transport goods to its landlocked northeastern states, reducing dependence on the narrow Siliguri Corridor

Connection to this news: China gaining a development foothold at Mongla directly impinges on India's logistical access to the Northeast and undermines India's effort to project economic influence in Bangladesh.

Belt and Road Initiative (BRI) and China's Maritime Strategy

China's Belt and Road Initiative (BRI), launched in 2013, is a massive infrastructure connectivity programme encompassing overland and maritime routes. Bangladesh formally joined the BRI in 2016, becoming the first South Asian country to do so. China's "String of Pearls" strategy refers to its development of port infrastructure across the Indian Ocean littoral — in Pakistan (Gwadar), Sri Lanka (Hambantota), Myanmar (Kyaukphyu), and now more explicitly in Bangladesh — with the dual potential for commercial and strategic use.

BRI announced in 2013 by President Xi Jinping; encompasses the Silk Road Economic Belt (overland) and 21st Century Maritime Silk Road (sea)
Bangladesh joined BRI in 2016
China supplies approximately three-quarters of Bangladesh's arms imports (2019–2023), and has funded the BNS Sheikh Hasina naval base, submarines, frigates, and corvettes for Bangladesh
China Civil Engineering Construction Corporation (CCECC) is the entity signing the Mongla Economic Zone MoU

Connection to this news: The Mongla deal is a direct expansion of BRI into Bangladesh's port sector, giving China a logistics and potentially strategic position near India's eastern seaboard.

India's Neighbourhood First Policy and Connectivity Diplomacy

India's Neighbourhood First Policy prioritises strengthening economic, infrastructure, and cultural ties with its immediate neighbours. In Bangladesh, this has been operationalised through lines of credit for infrastructure projects, bilateral transit and port-access agreements, and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) framework. The BBIN (Bangladesh-Bhutan-India-Nepal) Motor Vehicles Agreement is another connectivity initiative aimed at facilitating movement of goods and people across the sub-region.

October 2018: India and Bangladesh signed an agreement permitting Indian cargo transit via Chittagong and Mongla ports to northeastern states via four land routes: Agartala-Akhaura, Dawki-Tamabil, Sutarkandi-Sheola, and Srimantapur-Bibirbazar
India Ports Global Ltd. secured terminal operating rights at Mongla in May 2024
India's $115 million line-of-credit investment in Mongla Port preceded the current shift
Relations between India and Bangladesh have remained strained following the political transition in Dhaka in August 2024

Connection to this news: The loss of the Mongla Economic Zone project represents a reversal of India's connectivity diplomacy gains in Bangladesh, achieved over nearly a decade of bilateral investment.

Siliguri Corridor: India's Strategic Vulnerability

The Siliguri Corridor, also known as the Chicken's Neck, is a narrow strip of land (approximately 22–25 km wide) in West Bengal connecting mainland India to its northeastern states. It is strategically vulnerable; any disruption there would sever connectivity to eight northeastern states. India's investment in Mongla and Chittagong port access was partly motivated by the need to build alternative supply routes to the Northeast, reducing strategic dependence on the Siliguri Corridor.

Siliguri Corridor is approximately 22–25 km wide at its narrowest point
The corridor is flanked by Nepal (north) and Bangladesh (south)
Mongla and Chittagong port access provides India sea-land alternatives for northeastern logistics
Chinese development of Mongla Port Economic Zone reduces India's strategic comfort margin

Connection to this news: A Chinese-developed economic zone at Mongla compounds India's Siliguri vulnerability by placing Chinese economic infrastructure at a key alternative supply hub for the Northeast.

Key Facts & Data

Mongla Port location: Bagerhat district, Khulna division, Bangladesh; ~100 km north of Bay of Bengal
Bangladesh's seaport ranking: Mongla is second after Chittagong
Distance from Kolkata: less than 200 km
India-Bangladesh port access agreement: October 2018
India Ports Global Ltd. terminal rights: May 2024
India's line of credit investment in Mongla: approximately $115 million
Bangladesh joined BRI: 2016 (first South Asian country)
MoU signed in June 2026 with: China Civil Engineering Construction Corporation
China's share of Bangladesh arms imports (2019–2023): approximately 75%
Indian MoU for Hiranandani Group at Mongla Economic Zone: 2022 (delisted 2025 for non-commencement)