In its analysis, GlobalData indicates that Bangladesh’s defence expenditures will decrease marginally between 2024 and 2028, as a percentage of its gross domestic product.
The average percentage during 2019 to 2023 was 1.8%, but this is expected to fall to 1.5% between 2024 and 2028, according to Bangladesh Defence Market 2023-2028.
There is, however, no lack of funding since the defence budget is expected to increase from $4.3 billion in 2024 to $5.3 billion in 2028, at a compound annual growth rate of 5.2%.
What accounts for this slight shortfall over the next five years?
However, the South Asian nation is unlikely to provide robust funding at the expense of economic development. Bangladesh is on the road to recovery from the pandemic-induced downturn. Thus, a consistent flow of defence funding is anticipated as the economy improves.
Building up Bangladesh’s navy is a priority
As part of the country’s ‘Forces Goal 2030’ initiative, which aims to enhance the capabilities of the country’s armed forces, the defence budget will increase.
Naval vessels and surface combatants are expected to occupy the majority of the budget, whereas communications systems and electronic warfare (EW) systems offer particularly lucrative opportunities, as their estimated contract allocations (ECAs) are estimated to be approximately $1.7 billion, $654.7 billion, and $4500.1 billion, respectively.
Over the period 2023-28, $1.4 billion will be invested in frigates, while $181.6 million will be invested in light combat vessels.
In addition, Chittagong Dry Dock Limited received a contract to build six new offshore patrol vessels for the Bangladeshi Navy in 2019.
As a result of the Royal Navy’s offshore patrol vessel, HMS Tamar, visiting the Bay of Bengal in January 2023, the Bangladeshi Navy has expressed its concern about the safety of its waters.
The UK’s commitment to Bangladesh was highlighted through discussions, combined training, and cultural exchanges.
“The Bangladeshi Navy have been very eager to exchange knowledge and understand the way we operate our Offshore Patrol Vessels,” Commander Elliot-Smith noted at the time.
“The visit has made clear the strategic importance of Bangladesh. Its Navy approaches interaction with the UK with a great sense of reverence, and they celebrate unanimously that their doctrine and policies are aligned to our own.”
