Thu, Jul 09, 2026
Is India Rethinking How It Assists Its Neighbours?
From cuts for Bangladesh to big hikes for Bhutan and Nepal, India’s fresh allocations show how diplomacy is reshaping its ties with the neighbourhood
Feb 04, 2026 · 1 min read
India’s Union Budget does not stop at domestic welfare; it also reflects how New Delhi views its neighbourhood in strategic partnerships. This time, ₹5,685.56 crore has been set aside as aid to other countries, a little over ₹200 crore less than last year.
The sharpest cut is for Bangladesh, where aid has been halved, amid rising political & diplomatic tensions, and violence following Sheikh Hasina’s conviction. Funding for the Chabahar Port project has also been withdrawn, linked to growing pressure from US sanctions and instability in West Asia.
At the same time, support has risen elsewhere. Nepal and Sri Lanka will receive an additional ₹100 crore. Bhutan remains a major priority with ₹2,288 crore, while Afghanistan’s allocation has increased by ₹50 crore. Mongolia and Mauritius have also seen fresh hikes.
With cuts for Bangladesh, the Maldives and Myanmar, Budget 2026 signals a shift. Aid is no longer driven by sentiment alone, but shaped by strategy, stability, and India’s changing regional relationships.
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