India’s financial assistance to Bangladesh has fallen to its lowest level in over 12 years, coinciding with the tenure of the interim government led by Professor Muhammad Yunus.
Since 2014, India has provided approximately 15.57 billion rupees in aid to Bangladesh. However, recent years have seen a significant decline, with the 2025–26 fiscal year showing the lowest disbursement in over a decade.
Five years ago, India was providing more than 2 billion rupees annually. However, under the interim government, the figure has dropped to just 250 million rupees—a decline of about one-eighth of the previous amount.
These details were revealed by Kirti Vardhan Singh, India’s Minister of State for External Affairs, during a Lok Sabha session last Friday in response to a question about Bangladesh’s financial aid from the 2014–15 fiscal year onward.
According to Singh, India’s assistance peaked at 2.1953 billion rupees in 2021–22, but it has steadily declined since then. In the 2024–25 fiscal year, the amount dropped to 590 million rupees, coinciding with the political crisis in Bangladesh, the fall of Sheikh Hasina’s government, and the formation of the interim government.
As of February 2026, only 250 million rupees had been disbursed in the current fiscal year, marking the lowest assistance level in over a decade.
Despite the decline in direct financial aid, Kirti Vardhan Singh reiterated that India remains committed to Bangladesh’s development through various programs, including humanitarian aid, disaster relief, and capacity-building initiatives. India also emphasized the strong historical, cultural, and geographical ties between the two nations.
According to Bangladesh’s Economic Relations Division (ERD), India has disbursed USD 2.1 billion under its LoC arrangements since 2010. However, many projects under the USD 7.36 billion commitment have faced delays, with several still in the proposal stage.
An ERD official mentioned that the pace of disbursement slowed significantly after the interim government took office, but the new government is reviewing obstacles to the flow of funds under these arrangements.
Bd-pratidin English
