Overview
The GOB is actively seeking to upgrade its military and security capabilities and has increased its budget allocation for defense and security-related acquisitions.
Bangladesh’s $64.87 billion national budget in FY 2025-26 includes a 5.2 percent ($3.37 billion) allocation for defense and 4.2 percent ($2.23 billion) allocation for public security. These allocations grew steadily over the years, but growth slowed after the outbreak of the COVID-19 pandemic. According to analysis from research consultancy Strategic Defense Intelligence, the Bangladeshi defense industry is largely underdeveloped with only limited domestic suppliers. As a result, most of Bangladesh’s defense and security equipment and service needs are met through government contracts with foreign suppliers.
The Directorate General of Defense Purchase (DGDP) manages procurements for the Ministry of Defense and the various armed forces, including the Army, Navy, and Air Force. The Ministry of Home Affairs’ procurement office manages the Ministry’s procurements, while the Public Procurement Act of 2009 governs them. Tenders for security and defense equipment and services are frequently open only to international bidders. Low pricing remains an issue for U.S. bidders, especially for items that can be procured regionally
Opportunities
U.S. firms specializing in these products may find opportunities in Bangladesh: personal protective equipment; surveillance equipment; communication equipment; aircraft; helicopters; naval vessels; security consulting services; counter-UAS (unmanned air systems), air defense, anti-tank guided missiles, loitering munitions, and artillery ammunition.