India has slashed Bangladesh's budget allocation by 50% to Rs 60 crore in Union Budget 2026-27, down from Rs 120 crore, amid escalating diplomatic tensions. The reduction follows violence against minorities, particularly Hindus, and Bangladesh's foreign policy shift toward Pakistan after Sheikh Hasina's fall in 2024. The MEA criticized Bangladesh's interim government for attributing attacks to personal rivalries, stating it emboldens extremists. Bangladesh has strengthened Pakistan ties through visa-free diplomatic travel, revived trade commissions, and restored direct flights after 14 years. India allocated no funds for Iran's Chabahar port project due to US sanctions. Bhutan remains India's largest aid recipient at Rs 2,289 crore. (PC: X)

Union Finance Minister Nirmala Sitharaman targeted the Opposition over India's economic performance, citing Elon Musk's post on IMF data showing India and China's dominant role in global growth. Speaking to university students after presenting Budget 2026-27, she highlighted that China contributes 26% and India 17% to global GDP growth, together accounting for 43%. Sitharaman urged the Opposition to acknowledge India's strengthened economic position, expressing confidence in bridging the gap with China. Musk had commented that "the balance of power is changing" when sharing the IMF chart. The IMF projects global growth at 3.3% in 2026, citing technology investment and fiscal support as key drivers despite geopolitical and trade risks.

The ICC has warned Pakistan of possible consequences after the government decided the national team will not play the T20 World Cup match against India in Colombo on February 15. In a statement, the world body said it is still waiting for official word from the Pakistan Cricket Board. It said global events require all teams to play scheduled matches. “Selective participation is difficult to reconcile with the fundamental premise of a global sporting event,” the ICC said. It added that skipping matches hurts fairness and the interests of fans. The ICC urged the PCB to find a “mutually acceptable resolution” and noted possible long-term effects. (PC: X)

Finance Minister Nirmala Sitharaman presented Budget 2026 with a strong focus on infrastructure, manufacturing, defence and technology. The government expects economic growth of around 7% while keeping the fiscal deficit at 4.3%. Big announcements include new freight corridors, support for semiconductors, AI data centres and higher defence spending. Customs duty has been removed on 17 cancer drugs, making treatment cheaper. Tax compliance will be simpler under a new Income Tax Act from April 2026. Prime Minister Narendra Modi said the budget strengthens reforms and supports long-term growth, though markets reacted negatively due to higher trading taxes.

US President Donald Trump responded after the US Justice Department released millions of pages linked to Jeffrey Epstein. Speaking to reporters, Trump said the documents “absolve me” and are “the opposite of what people were hoping.” He said others had reviewed the files and told him they clear his name. The Justice Department said some claims against Trump were “false” and “sensational.” Officials stressed that being named in the files does not prove wrongdoing. Epstein, a convicted sex offender, died by suicide in a New York jail in 2019 while awaiting trial. (PC: AP)

The International Cricket Council is yet to decide on any action after Pakistan said it will not play India at the ICC Men's T20 World Cup. Sources said the ICC has not received any official letter from the Pakistan Cricket Board. The decision was announced by the Pakistan government, not the PCB. If Pakistan do not take the field on February 15, the match will be treated as a forfeit. Pakistan would lose points and suffer a net run rate hit. The ICC may consider further sanctions only after formal communication from the PCB. (PC: AP)

Iran’s Supreme Leader Ayatollah Ali Khamenei warned that a US attack would trigger a regional war. He said Iran would respond strongly if harmed. His warning came after Donald Trump said large and powerful US warships were moving towards the region. Trump did not say if the United States would strike but said talks were still possible. Iran’s army chief said forces were on high alert and “fingers are on the trigger”. Tensions rose further after deadly explosions in Iran, though officials denied foreign involvement. Fears of escalation across the Middle East continue to grow. (PC: Reuters, AP)

Tech billionaire Elon Musk said the global “balance of power is changing” after new data from the International Monetary Fund showed India ahead of the United States in driving global growth. IMF projections for 2026 place India among the top contributors to world GDP growth. India is expected to add 17 per cent, compared to 9.9 per cent from the United States. China and India together may account for over 40 per cent of global growth. The IMF also expects global inflation to ease, while trade tensions remain a risk. (PC: Reuters)

At least 12 people were killed after a Russian drone strike hit near a company shuttle bus in eastern Ukraine, officials said. Seven others were injured in the attack in the Dnipropetrovsk region. Energy firm DTEK said the bus was carrying mine workers returning after a shift and called it a targeted strike. Separate Russian attacks overnight killed three more people and injured several others. A drone strike also hit a maternity hospital in Zaporizhzhia, injuring women in labour. Ukrainian President Volodymyr Zelensky said peace talks involving Russia and the US will now begin later this week. (PC: State Emergency Service of Ukraine)

UK Prime Minister Keir Starmer said former Prince Andrew should testify before a US congressional panel over his links to Jeffrey Epstein. His remarks came after new US Justice Department files showed Andrew stayed in contact with Epstein years after his 2008 conviction. The files include emails and images linked to Epstein’s network. Starmer said anyone with information must cooperate and share facts. Andrew, stripped of royal titles by King Charles III, has denied wrongdoing. US lawmakers renewed calls for his testimony. Epstein died by suicide in 2019 while awaiting trial on sex-trafficking charges. (PC: AP)