India’s new fiscal year budget has increased grant assistance to Bangladesh by 74 percent, allocating 600 million rupees for the 2027 financial year. According to The Hindu Business Line, citing India’s central budget documents, this marks a significant rise from the revised figure of 344.8 million rupees in the previous year. The report noted that despite domestic discussions about anti-India sentiment, New Delhi expanded its allocation to Dhaka.

The budget also shows India halting all grants to Iran’s Chabahar Port, which previously received 4 billion rupees, reportedly due to U.S. sanctions pressure. Meanwhile, Afghanistan’s grant rose by 50 percent to 1.5 billion rupees, and Bhutan remains the largest recipient with a total of 22.88 billion rupees. In contrast, allocations for Nepal, the Maldives, and Mauritius were reduced, with Mauritius facing the steepest cut of about 33 percent.

Overall, India proposed 87.92 billion rupees in total foreign grants and loans, down 27 percent from the previous year’s revised figure, signaling a strategic and financial restructuring of its foreign aid program.