India increases allocation for Bangladesh in new budget

India increases allocation for Bangladesh in new budget.

India has increased allocation for Bangladesh in the new fiscal year budget significantly. According to the country's central budget documents, India has allocated 600 million rupees for Bangladesh this time, which is 74 percent more than the previous year.

Indian media reports said that despite the recent anti-India sentiment in Bangladesh, it has been decided to increase the amount of financial assistance. At the same time, New Delhi has stopped the allocation for Iran's Chabahar port. The country has taken this decision in the face of increasing pressure from the United States.

According to the revised estimates, India provided a grant of 344.8 million rupees to Bangladesh in the previous fiscal year. In India's budget proposal for 2026, the Indian Ministry of External Affairs (MEA) had proposed a grant of 120 million rupees for Bangladesh, which was later reduced during the revised estimates.

On the other hand, India is not providing any grant for Iran's Chabahar port in the new fiscal year. Earlier, India had provided Rs 400 crore for the Chabahar port in the 2024-25 fiscal year. In addition, there was a promise of another Rs 400 crore in the revised budget for the 2026 fiscal year. Afghanistan is also getting additional grants from India in the 2027 fiscal year. While the country received Rs 100 crore in the previous fiscal year, it will get Rs 150 crore in the new fiscal year.

Bhutan, as always, is getting the highest allocation from India this time too. The total allocation for the country is Rs 2,288 crore. Out of this, Rs 1,769 crore is a grant and Rs 5,200 crore is a loan. The allocation for Bhutan has increased by 17 percent compared to the last fiscal year. On the other hand, assistance has been reduced for Nepal, Maldives and Mauritius.

In total, a total of Rs 8,792 crore has been proposed to be given to foreign governments in the new fiscal year as grants and loans. This is 27 percent less than the Rs 12,107 crore proposed in the revised budget of the last fiscal year. Of this total assistance for the new fiscal year, Rs 6,997 crore will come from the Ministry of External Affairs and an additional Rs 1,794 crore will be provided by the Finance Ministry. This is a clear indication of a strategic and financial restructuring of India's foreign aid programme.

Source: The Hindu Business Line