Budget 2026 Cuts India’s Aid Allocation to Bangladesh by 50% as Bilateral Strain Grows

Brief by Shorts91 Newsdesk / 04:07pm on 01 Feb 2026,Sunday India Global

India has reduced its financial allocation to Bangladesh to Rs 60 crore in Union Budget 2026-27, down from Rs 120 crore last year. The cut comes as ties between the two neighbours remain under strain. The External Affairs Ministry recently told Parliament it is monitoring reports of attacks on minorities in Bangladesh and has raised the issue with Dhaka at political and diplomatic levels. Officials have also expressed concern over explanations given for such incidents. Bangladesh’s recent outreach to Pakistan has drawn attention in New Delhi. Meanwhile, Bhutan remains the largest recipient of Indian foreign aid with a higher allocation this year. (PC: NDTV)

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