Budget 2026: India Halts Chabahar Funding, Cuts Aid to Bangladesh Amid Geopolitical Shifts
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News18•01-02-2026, 16:51
Budget 2026: India Halts Chabahar Funding, Cuts Aid to Bangladesh Amid Geopolitical Shifts
- •India's Union Budget 2026-27 reveals a significant recalibration of overseas development assistance, aligning with the "Viksit Bharat" agenda and evolving geopolitical sensitivities.
- •Funding for the Chabahar port project in Iran has been completely omitted, dropping from Rs 400 crore to zero, likely due to renewed US sanctions and the expiry of India's sanctions waiver.
- •Aid to Bangladesh has been halved from Rs 120 crore to Rs 60 crore, following strained relations and project execution challenges under its interim government.
- •Bhutan remains the largest beneficiary with a 6% aid increase to Rs 2,289 crore, while Nepal sees a 14% boost to Rs 800 crore, and Sri Lanka's aid rises by one-third to Rs 400 crore.
- •Assistance to Afghanistan is maintained at Rs 150 crore for humanitarian relief, and aid to Maldives is reduced by 8% to Rs 550 crore, matching Mauritius's increased allocation.
Why It Matters: India's Budget 2026 reflects a strategic shift, pausing Chabahar funding and adjusting aid to neighbors.
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