India slashes Chabahar Port aid to zero in Union Budget 2026-27

Exam-focused facts from the 2 February 2026 current affairs briefing.

Key facts

Union Budget 2026-27 allocated ₹0 to Iran’s Chabahar Port, down from ₹400 crore in FY 2024-25 and ₹100 crore initially in FY 2025-26.
US sanctions on Iran and a potential 25% tariff warning from the Trump administration influenced the funding pause.
India holds a six-month US exemption for Chabahar Port participation ending 26 April 2026.
Bhutan remains the largest aid recipient at ₹2,288 crore in Budget 2026-27.
Bangladesh’s allocation dropped to ₹60 crore in Budget 2026-27 after being revised to ₹34 crore in FY 2025-26.
Maldives received ₹550 crore, Sri Lanka ₹400 crore, Nepal ₹800 crore, Myanmar ₹300 crore, Afghanistan ₹150 crore, Mongolia ₹25 crore, African countries ₹225 crore, Mauritius ₹550 crore, and Seychelles ₹19 crore under Aid to Countries in Budget 2026-27.
Total Aid to Countries outlay for FY 2026-27 is ₹5,686 crore, about 4% higher than FY 2025-26 Budget Estimates of ₹5,483 crore.