The two countries have stepped up ties since the removal of former Prime Minister Sheikh Hasina from power in 2024

Dhaka says it is ‘shocked’ the ousted leader was allowed to speak at a news conference, her first since the 2024 ouster.

India has halved its financial assistance to Bangladesh in the Union Budget 2026-27, a move that comes against the backdrop of strained bilateral ties, rising attacks on minorities in Bangladesh.

India slashes aid to Bangladesh by half amid diplomatic tensions - New Delhi cuts Dhaka funding amid strained ties, while Bhutan remains top aid recipient

Bangladesh’s ousted leader Sheikh Hasina has slammed the country’s upcoming election after her party was barred from the polls, remarks that could deepen tensions ahead of the pivotal vote next month

India has significantly reduced its allocation for Bangladesh in the Union Budget 2026-27. The government has allocated Rs 60 crore to the neighbouring country, a 50 per cent drop from the Rs 120 crore allocated in the previous fiscal year.

For New Delhi, the deal is a strategic breakthrough that aligns trade with geopolitics. For Islamabad and Dhaka, it threatens to dismantle decades of hard-won advantage built on special trade regimes rather than competitiveness.

Shooting: The Asian Championships begin in New Delhi. Football: India (W) face Bangladesh at the SAFF U-19 Women's Championship. Ahead of the upcoming ISL season, Bengaluru FC owner Parth Jindal last night confirmed that all the clubs' players have agreed to play this season on reduced salaries.