India’s financial aid lowest in 12 years during interim govt

India has provided Bangladesh with approximately 15.57 billion rupees in financial assistance since 2014. However, the amount has fallen to its lowest level during the tenure of the interim government led by Prof Muhammad Yunus.
India’s assistance (excluding Lines of Credit) stood at 59.15 crore rupees in the 2024-25 financial year and dropped further to 25.01 crore rupees in the 2025-26 financial year (up to February 2026).
The highest level of assistance was recorded in the 2021-22 financial year, amounting to 219.53 crore rupees.
Indian Minister of State for External Affairs Kirti Vardhan Singh shared the data on Friday. He also stated that India has extended $6.5 billion in assistance to Bangladesh since 2014 through two major Lines of Credit.
“India’s approach to relations with Bangladesh is neighbourhood-driven and people-centric,” he said in a written reply to a question in the Lok Sabha, the lower house of India’s Parliament.
“Accordingly, India has extended support for various development-oriented initiatives in Bangladesh through Lines of Credit and grants-in-aid for projects, as well as support for High Impact Community Development Projects, humanitarian assistance, disaster relief, and capacity-building programmes.”
Kirti Vardhan said both neighbouring countries share deep historical, geographical, cultural, linguistic and social linkages. 
“India has consistently expressed its support for a democratic, stable, peaceful, progressive and inclusive Bangladesh and remains committed to continued high-level exchanges and meetings under bilateral institutional mechanisms,” he said.