New Delhi, April 21, 2025 — India has postponed a significant infrastructure project in Bangladesh, valued at approximately ₹5,000 crore, due to the ongoing political instability in the neighboring country. This decision reflects India’s concerns over the deteriorating law and order situation following the resignation of former Prime Minister Sheikh Hasina and the establishment of an interim government led by Nobel laureate Muhammad Yunus. 
The suspended project is believed to be the extension of the India-Bangladesh Friendship Pipeline (IBFP), designed to transport diesel from India to northern Bangladesh. The expansion beyond Parbatipur has been halted, as the political turmoil has disrupted the project’s progress .
India’s External Affairs Minister, S. Jaishankar, acknowledged the impact of Bangladesh’s internal political changes on bilateral development initiatives, stating that such disruptions are a natural consequence of political transitions .
The political upheaval in Bangladesh has also strained diplomatic relations between the two countries. India has reduced the issuance of medical visas to Bangladeshi citizens, citing security concerns, while Bangladesh has canceled a planned training program for its judges in India . 
As the interim government in Bangladesh seeks to stabilize the nation, India remains cautious in its engagement, closely monitoring the evolving political landscape before proceeding with major collaborative projects.