The Union Budget 2026-27 has made no allocation for the port in Iran, indicating the suspension of India’s activities at the Chabahar port. | Photo credit: Getty Images/iStockPhotos
The Union Budget 2026-27 has made no allocation for the port in Iran, indicating the suspension of India’s activities at the Chabahar port. Chabahar received an allocation of ₹ 400 crore in the previous financial year. Indian officials said New Delhi engaged Tehran and Washington DC on January 12 after US President Donald Trump announced on January 12 that no country would do business with Iran. End up paying 25% additional tariffs when doing business with the US
The deterioration in India’s relations with Bangladesh is also reflected in the budget, with an allocation of ₹ 60 crore (from ₹ 120 crore) for Bangladeshi projects in the coming year.
Bhutan continued to be the top allotment at ₹2,288.55 with an increase of ₹138. 56 crores from last year. India’s annual allocation to Bhutan supports several development activities and infrastructure projects.
Myanmar, another conflict-affected country in India’s neighbourhood, has also seen a reduction in allocation, down from ₹ 350 crore last year to ₹ 300 crore this year.
On the other hand, Sri Lanka is getting ₹400 crore this year, an increase of ₹100 crore.
In 2025, politically troubled Nepal received ₹ 800 crore, ₹ 100 crore more than last year’s allocation.
The Ministry of External Affairs has earmarked ₹1,292 crore for international training programmes, which are seen as an important part of India’s soft diplomacy. Officers from other countries are trained in these programs, which act as a bridge between India and foreign states.
Published – February 01, 2026 05:21 pm IST
