Budget 2026–27: India Cuts Bangladesh Aid, Drops Chabahar Port Funding

Описание: India’s Union Budget 2026–27 marks a significant recalibration of its overseas development assistance, reflecting tighter fiscal prioritisation and evolving geopolitical realities. While overall aid routed through the Ministry of External Affairs sees a marginal increase, key projects and partner countries witness notable changes.

The most striking decision is the complete absence of funding for the Chabahar port project in Iran. Despite a 10-year agreement signed in 2024 to operate the Shahid Beheshti terminal, the allocation for 2026–27 has been reduced to zero. The move coincides with renewed external pressure following US President Donald Trump’s announcement of tariffs on countries trading with Iran, casting uncertainty over India’s regional connectivity ambitions.

Among neighbours, Bangladesh faces one of the sharpest cuts, with aid halved amid strained bilateral ties. In contrast, Bhutan, Nepal and Sri Lanka see increased allocations, underscoring India’s continued commitment to hydropower, infrastructure development and post-crisis recovery in the region.

Aid to the Maldives and Myanmar is reduced, while assistance to Afghanistan remains unchanged for humanitarian purposes. Overall, the budget reflects India’s neighbourhood-first approach with selective adjustments driven by strategic, diplomatic and economic considerations.

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