India slashes Bangladesh assist by 50% to ₹60 crore in Union Funds 2026-27, amid strained ties post-Sheikh Hasina’s 2024 ouster.
This marks the steepest discount in regional assist, triggered by a diplomatic freeze, elevated minority assaults, and Dhaka’s tilt towards Pakistan.
Whereas international locations like Afghanistan, Sri Lanka and Nepal noticed a marginal improve in allocation.
Afghanistan’s funding rose to ₹150 crore from the earlier ₹100 crore, Nepal’s allocation elevated to ₹800 crore, and Sri Lanka’s to ₹400 crore, whereas complete international grants hit ₹5,685 crore, based on finances papers revealed by the Authorities of India.
India allotted ₹120 crore for Bangladesh assist within the 2025-26 Union Funds, however revised estimates projected simply ₹34 crore in precise spending. In 2024-25, India sustained the identical ₹120 crore allocation, reflecting a deliberate shift towards restrained government-to-government assist.
India boosted assist to Afghanistan by ₹50 crore in Funds 2026-27 because it recalibrates ties with Kabul below the Taliban regime. New Delhi has steadily revived engagement with the administration, making it a big transfer in the identical route.
In October final 12 months, Taliban International Minister Amir Khan Muttaqi visited New Delhi for bilateral talks with Exterior Affairs Minister S Jaishankar. India has since reopened its Kabul embassy and hosted Afghanistan’s commerce minister, marking a coverage of measured re-engagement and enhancing relations with the Taliban regime.
The international assist within the finances 2026-27 additionally noticed a rise in assist to Sri Lanka and Nepal by ₹100 crore every, concentrating on infrastructure, capability constructing, and financial stability to solidify India’s regional affect.
Nepal receives ₹800 crore in assist, rating amongst India’s prime beneficiaries, whereas Bhutan stays the most important recipient, and sees its allocation rise by ₹138 crore to ₹2,288 crore from ₹2,150 crore within the earlier finances.
Whereas different beneficiaries of India’s international assist embody the Maldives, which noticed a drop of ₹50 crore to ₹500 crore, whereas Mauritius sees a ten% rise. Myanmar’s allocation falls 14% to ₹300 crore attributable to instability and execution hurdles.
Africa holds regular at ₹225 crore, Latin America doubles to ₹120 crore, and Eurasia dips to ₹38 crore. Complete ‘Assist to International locations’ reaches ₹5,686 crore, a slight uptick from final 12 months’s finances however ₹100 crore beneath revised 2025-26 figures.
