Bangladesh gets 74% hike in aid, but Iran's Chabahar snub
India's latest budget has given Bangladesh a 74% bump in aid—now at ₹60 crore—even though ties have sometimes been rocky.
At the same time, India will not be providing grants for Iran's Chabahar port in FY27 after earlier planning ₹400 crore in the revised FY26 estimates (and having provided ₹400 crore in FY24-25), a move shaped by mounting US sanctions pressure and diplomatic sensitivities.
Overall, India is spending less on foreign aid in FY27: ₹8,792 crore, down 27% from FY26 (revised estimates).
Afghanistan sees big boost, but Maldives and Nepal face cuts
Afghanistan gets a 50% jump to ₹150 crore, and Bhutan stays the biggest recipient with ₹2,288 crore (up 17%).
Meanwhile, Mauritius saw its aid slashed by a third to ₹550 crore; Maldives and Nepal also face cuts.
On the flip side, Sri Lanka and Seychelles both get a bit more help in FY27.
The changes show India is rethinking who it supports—and why—in the region.