As relations between Bangladesh and India reach historic lows, Dhaka is turning to Turkey for investment and technological collaboration to bolster its domestic defense industry and diversify its economy.
Strategic Meeting in Dhaka
On January 9, Chief Adviser Muhammad Yunus, leading Bangladesh’s interim government, hosted a Turkish delegation led by Trade Minister Dr. Ömer Bolat at the state guest house Jamuna. Yunus emphasized Bangladesh’s status as the world’s eighth-most populous country, expressing the government’s commitment to creating employment opportunities for the nation’s youth.
Yunus urged Turkey to invest in Bangladesh, highlighting the potential of the country’s young and vibrant workforce to power factories and enable product distribution across the region. He also proposed that Turkey introduce advanced technology to support the development of Bangladesh’s defense industry, stating:
“You are the leader of the technology; you can build your defense industry here. Let’s make a beginning … we are available for anything that you need.”
Opportunities for Economic Diversification
Dr. Ömer Bolat emphasized the potential to expand Turkish-Bangladeshi cooperation beyond textiles, Turkey’s primary import from Bangladesh. Key areas for collaboration include:
- Defense Industry
- Healthcare and Pharmaceuticals
- Farm Machinery
Bolat suggested that Turkey could fill the gap left by India and other nations in Bangladesh’s import markets, stating:
“We can replace India and other markets in Bangladesh’s imports. There can be cooperation in economic and social fields at all levels.”
Trade and Investment Dynamics
In the fiscal year 2023-24, bilateral trade between Bangladesh and Turkey reached approximately $1 billion, with Bangladesh exporting $581 million worth of goods to Turkey and importing $424 million. Around 20 major Turkish companies are currently operating in Bangladesh across diverse sectors, including garments, chemicals, construction, and energy. Notable companies include:
- AYGAZ (LPG)
- Coca-Cola Içecek
- ARCELIK (refrigeration and air conditioning)
Strengthening Defense and Technology
Yunus’s proposal to leverage Turkey’s advanced technological expertise aligns with Bangladesh’s broader goals of reducing dependence on India while building a more robust defense infrastructure. Bolat acknowledged the opportunity to strengthen ties through investment in defense, further enhancing Bangladesh’s industrial capabilities.
Looking Ahead
With strained ties between Dhaka and New Delhi, Turkey’s role as a key economic and technological partner for Bangladesh is likely to grow. By diversifying trade and fostering collaboration in advanced industries, the two nations can build a mutually beneficial partnership that reshapes regional dynamics.