Archive · 2 Feb 2026
India Adjusts Aid Allocations in 2026 Budget
India has changed how much money it gives to its neighboring countries in its new budget.
It gave more money to Bhutan, Afghanistan, Nepal, Sri Lanka, Mongolia, and Mauritius.
Bhutan got the most, which shows they are very important friends, especially for big projects like dams and roads.
Afghanistan, Nepal, and Sri Lanka also got more money because they need help with their economies.
But Bangladesh, Maldives, and Myanmar got less money.
For Bangladesh, only a small part of the previous money was used, so maybe they didn't need as much.
This shows India is focusing more on some countries than others.
India also stopped giving money to a project in Iran called the Chabahar port because of new rules from the US.
India increased aid to Bhutan to Rs 2,288.55 crore, highlighting a strong strategic partnership.
Afghanistan's aid rose by Rs 50 crore to Rs 150 crore, emphasizing humanitarian and developmental support.
Nepal and Sri Lanka each received a Rs 100 crore increase, totaling Rs 800 crore and Rs 400 crore respectively, to aid economic recovery.
Mongolia's funding jumped from Rs 5 crore to Rs 25 crore, while Mauritius saw a Rs 50 crore increase to Rs 550 crore.
Allocations to Bangladesh, Maldives, and Myanmar were reduced, with Bangladesh's allocation dropping by Rs 60 crore to Rs 60 crore.
- Who
- India
- What
- Adjusted development aid allocations in the 2026 Union Budget
- When
- Upcoming fiscal year
- Where
- Neighboring countries including Bhutan, Afghanistan, Nepal, Sri Lanka, Mongolia, Mauritius, Seychelles, Bangladesh, Maldives, and Myanmar
- Why
- To reflect India's 'Neighbourhood First' policy and support economic recovery and strategic partnerships
India's Strategic Priorities
US Sanctions on Iran
Chabahar Port Funding
India's Strategic Priorities
India has historically allocated ₹100 crore annually for the Chabahar port project in Iran, viewing it as a strategic asset for regional connectivity and access to Afghanistan and Central Asia.
US Sanctions on Iran
The US has imposed sanctions on Iran and is set to end its waiver on India's involvement in the Chabahar port project, which may force India to reconsider its funding.
- Bhutan
- Rs 2,288.55 crore
- Afghanistan
- Rs 150 crore
- Nepal
- Rs 800 crore
- Sri Lanka
- Rs 400 crore
- Mongolia
- Rs 25 crore
- Mauritius
- Rs 550 crore
- Seychelles
- Rs 19 crore
- Bangladesh
- Rs 60 crore
- Maldives
- Rs 500 crore
- Myanmar
- Rs 300 crore
- Total Aid Allocation
- Rs 5,686 crore
- Chabahar Port Annual Allocation
- ₹100 crore (previously)
- US Waiver End Date
- April 26
Sources
India ups budget allocation for Afghanistan, Mongolia, Nepal, Sri Lanka but a cut for Bangladesh
Budget 2026: India cuts Bangladesh aid by half, drops Chabahar port allocation to zero
Budget 2026: Why India didn’t allocate funds for Iran’s Chabahar port despite past annual ₹100 crore outlay
India halves aid to Bangladesh, boosts support for Afghanistan and Sri Lanka in Union Budget 2026