Budget 2026-27: India slashes aid to Bangladesh by half amid strained ties
PTC News Desk: India has significantly revised its overseas development assistance in the Union Budget 2026–27, slashing aid to Bangladesh by 50 per cent, a decision that underscores growing strains in bilateral ties amid reports of rising anti-Hindu incidents and targeted killings in the neighbouring country.
Bangladesh has faced one of the sharpest reductions in India’s foreign aid, with its allocation cut from Rs 120 crore to Rs 60 crore, even as funding for most other neighbouring nations has been retained or increased. Budget documents show that although Rs 120 crore had been earmarked for Bangladesh earlier, only Rs 34.48 crore was actually disbursed, largely due to deteriorating relations. At the same time, the overall allocation under “Aid to Countries” has been raised to Rs 5,686 crore, around 4 per cent higher than last year’s Budget Estimate of Rs 5,483 crore.
Bhutan continues to be the largest recipient of Indian assistance, with its allocation rising by nearly 6 per cent to Rs 2,289 crore, reflecting sustained support for hydropower and infrastructure development.
Nepal has received a 14 per cent hike, taking its allocation to Rs 800 crore, while Sri Lanka’s assistance has increased by about one-third to Rs 400 crore, underlining India’s role in supporting the island nation’s recovery after its economic crisis. In the Indian Ocean region, allocations present a mixed picture: aid to the Maldives has been reduced by around 8 per cent to Rs 550 crore, while Mauritius has seen a 10 per cent increase to the same level.
Aid to Afghanistan remains unchanged at Rs 150 crore, largely earmarked for humanitarian assistance. Meanwhile, Myanmar’s allocation has been cut by roughly 14 per cent to Rs 300 crore, reflecting political instability and challenges in project implementation.
- With inputs from agencies
