Union Budget 2026-27 reduces India's development assistance to Bangladesh from Rs 120 crore to Rs 60 crore amid strained relations, with low prior utilization. Bhutan tops recipients with increased support, Nepal and Sri Lanka see rises, while Maldives and Myanmar face cuts. Overall foreign aid increases 4% to Rs 5,686 crore. The adjustment coincides with Chabahar port funding pause and prioritizes aligned neighbors amid regional dynamics and global pressures. Bangladesh's partial previous disbursement highlights underutilization.

Union Budget 2026-27 allocates zero funds for Iran's Chabahar port project, previously Rs 100 crore annually, reflecting caution over US sanctions and tariff threats on trade with Tehran. India's six-month exemption expires April 2026. Aid to Bangladesh halved to Rs 60 crore from Rs 120 crore amid strained ties, with low prior disbursement. Bhutan tops recipients with increased support, followed by Nepal and Sri Lanka. Overall foreign aid rises 4% to Rs 5,686 crore, prioritizing key neighbors while pausing Iran engagement amid geopolitical pressures.

Sunetra Pawar, wife of NCP leader Ajit Pawar, took oath as Maharashtra's Deputy Chief Minister on January 31, 2026, becoming the first woman to hold the post. The ceremony at Raj Bhavan was administered by Governor CP Radhakrishnan, attended by CM Devendra Fadnavis, Deputy CM Eknath Shinde, Ajit Pawar, and cabinet ministers. Sunetra, a Rajya Sabha MP, represents NCP (Ajit Pawar faction) in the Mahayuti government expansion. The move strengthens family political legacy amid NCP dynamics.

The India-EU free trade agreement reduces duties on European luxury cars from over 100% to 10-40%, wines and spirits from 150% to 20% over 5-10 years, and eliminates tariffs on medicines for critical illnesses, medical equipment, electronic spare parts, steel, and chemicals. Quota-based concessions protect India's auto industry. The pact opens European markets for Indian garments, leather, jewellery, and medicines, boosting exports while making imports more affordable for consumers. Negotiations concluded after 18 years, called the "mother of all trade deals" by Ursula von der Leyen.

A 27-year-old software engineer Yuvraj Mehta drowned after his car plunged into a water-filled construction pit in Greater Noida's Sector 150 amid dense fog. He survived nearly two hours calling for help, but his father alleges bystanders recorded videos instead of assisting and administration ignored safety requests for barricades. Police used cranes and ladders for recovery; FIR filed against developers amid protests demanding justice and better safety norms.

The Supreme Court expressed strong displeasure with Maneka Gandhi's podcast comments criticizing its stray dogs order as "impractical" and from "anger," deeming them contemptuous but choosing not to initiate proceedings due to magnanimity. The bench compared her remarks to Ajmal Kasab not committing contempt, questioned budgetary contributions as former minister, and highlighted lack of coordination among civic bodies for implementation amid ongoing case balancing feeding strays with resident rights.

Prime Minister Narendra Modi welcomed Nitin Nabin as the new BJP national president on January 20, 2026, humorously calling him "my boss" while emphasizing the party's worker-centric culture. Nabin, the youngest chief at 45, brings millennial energy and organizational experience. Modi highlighted BJP as a family driven by process, not position, supporting regional aspirations for national goals. Nabin visited temples before taking charge amid traditional ceremony at party headquarters.

Tamil Nadu Governor RN Ravi walked out of the assembly session on January 20, 2026, refusing to deliver the government-prepared address citing numerous inaccuracies and misleading statements. He alleged the speech ignored key issues like declining FDI rankings, rising crimes against women and Dalits, education mismanagement, and constitutional duties. The session began with the Tamil anthem, which the Governor's office called an insult to the national anthem. Chief Minister MK Stalin condemned the walkout as unacceptable and against traditions.

A 27-year-old software engineer Yuvraj Mehta drowned after his car plunged into a water-filled construction pit in Greater Noida's Sector 150 amid dense fog. He survived nearly two hours calling for help, but father alleges bystanders recorded videos instead of assisting and administration ignored safety requests for barricades. Police used cranes and ladders for recovery; FIR filed against developers amid protests demanding justice and better safety norms.

India is withdrawing from Iran's Chabahar port development project due to reimposed US sanctions under President Donald Trump, as per reports. India already liquidated its $120 million investment. The country received a six-month tariff waiver for operations until April 2026 from US. The strategic port provided a Pakistan-bypass route to Afghanistan and Central Asia via the INSTC corridor. Experts view the move as a setback benefiting China-Pakistan's Gwadar, while India seeks waiver extensions in talks with the US.