B Mirror Report: India has increased its proposed allocation for Bangladesh by 74 percent in the upcoming fiscal year. In the budget proposed for 2026–27, India has earmarked ₹60 crore (Indian Rupees) as aid or grant for Bangladesh. However, despite the increase, Bangladesh continues to receive the lowest Indian assistance among South Asian countries.
According to India’s central budget documents, the grant allocation has been made based on the request of India’s Ministry of External Affairs.
In the previous fiscal year, 2025–26, Bangladesh received ₹34.48 crore as revised aid. Last year, the Ministry of External Affairs had initially proposed ₹120 crore for Bangladesh, but it was later reduced to ₹34.5 crore in the revised budget.
The budget documents show that Bhutan will receive the highest Indian assistance among South Asian nations this year, with a total allocation of ₹2,288.56 crore, including ₹1,769 crore in grants and ₹520 crore in loans. Last year, Bhutan received ₹1,950 crore.
Nepal ranks second in India’s South Asia assistance list with ₹800 crore, followed by the Maldives with ₹550 crore, slightly down from ₹625 crore last year. Sri Lanka is fourth with ₹400 crore, an increase of ₹100 crore compared to the previous year. Myanmar is fifth, receiving ₹300 crore, up from ₹200 crore last year. Afghanistan, ranked sixth, will get ₹150 crore, up from ₹100 crore in the previous fiscal year.
Analysts say that a country’s economic situation affects the aid it receives. Given Bangladesh’s current economic condition, most countries are now providing fewer grants and offering loans with strict conditions. India has also followed this approach, providing loans to Bangladesh over the past decade under Lines of Credit (LOC).
India’s Finance Minister Nirmala Sitharaman presented the country’s new fiscal year budget today, Sunday, February 1. The total budget amounts to ₹53.50 lakh crore, an increase of 7.7 percent compared to last year. India’s fiscal year begins on April 1 and ends on March 31 of the following calendar year.
