Last Updated on March 23, 2026 1:08 am by BIZNAMA NEWS
Zakir Hossain from Dhaka
India’s financial assistance to Bangladesh has dropped to its lowest level in over a decade during the tenure of the interim government led by Muhammad Yunus, according to data presented in the Lok Sabha.
India has provided around ₹15.57 billion in assistance over the past 12 years. However, annual disbursement has fallen sharply, from over ₹2 billion five years ago to just ₹250 million in the ongoing 2025–26 fiscal year (till February). The figures were shared by Minister of State for External Affairs Kirti Vardhan Singh in response to a question by DMK MP TR Baalu.
According to the data, India provided ₹1.98 billion in 2014–15, with the highest assistance of ₹2.1953 billion recorded in 2021–22. Since then, funding has steadily declined, reaching ₹590 million in 2024–25, the year that saw a mass uprising in Bangladesh leading to the fall of Sheikh Hasina’s government and the formation of an interim administration under Yunus. Tensions between the two countries over various issues have been cited as a factor behind the drop in aid.
In his reply, Singh said India’s approach towards Bangladesh remains “neighbourhood-centric and people-oriented,” adding that New Delhi continues to support development initiatives through grants, capacity-building programmes, humanitarian aid, and disaster relief. He also stated that Bangladesh has not received preferential treatment in using Indian ports for exports and that any policy changes would be made after considering all relevant factors.
On Lines of Credit (LoC), Bangladesh’s Economic Relations Division (ERD) said India has disbursed $2.1 billion out of the $7.36 billion committed under three agreements signed in 2010, 2016, and 2017.
Under the 2010 LoC ($1 billion), 12 of 15 projects have been completed. Under the second LoC, two of 15 projects are complete, while under the third, eight of 13 are ongoing.
An ERD official noted that loan disbursement slowed after the interim government took office, adding that a review has been initiated to identify bottlenecks.
