Ties between India and Bangladesh have reportedly soured, according to Muhammad Yunus, the Chief Adviser of Bangladesh's interim government. Yunus claims that the strain in relations stems from India's disapproval of the student protests in Bangladesh that led to the ousting of former Prime Minister Sheikh Hasina in August of last year. Furthermore, Yunus has alleged that India is providing refuge to Hasina, which he believes is exacerbating tensions between the two nations.

Speaking on the sidelines of the 80th session of the United Nations General Assembly (UNGA) in New York, Yunus stated, "We have problems with India right now because they didn't like what the students have done". He further added, "India is hosting Hasina, who has created problems...that creates tension between India and Bangladesh". Hasina's 16-year rule with the Awami League ended after a violent mass uprising, after which she fled to India. Since then, she has been living in self-exile in New Delhi.

Yunus has also accused Indian media outlets of spreading "fake news" and propaganda, which he claims has further worsened the diplomatic rift. "A lot of fake news is coming from India, propaganda that it's an Islamist movement," Yunus stated. He also said that he has been labeled as a Taliban.

Adding to the list of grievances, Yunus has criticized India for its stance on the South Asian Association for Regional Cooperation (SAARC), asserting that it is "not working because it doesn't fit into the politics of one country". He advocated for reviving SAARC, comparing it to the European Union. "One of the first things we should do is revive SAARC. It's a wonderful idea," he said. Yunus also proposed a "mini SAARC" involving Bangladesh, Nepal, Bhutan, and India’s northeastern states to boost regional trade and connectivity, particularly to provide landlocked areas with access to the Bay of Bengal.

Since the student uprising in August 2024, India has repeatedly voiced concerns over anti-India rhetoric and threats toward its northeast, alongside a rise in attacks on minorities, particularly Hindus. The Yunus administration has dismissed these concerns, contributing to the worsening ties.

Despite the tensions, India has maintained engagement with the interim government. Prime Minister Narendra Modi met with Yunus in April 2025 on the sidelines of the BIMSTEC Summit in Bangkok, reiterating India's support for a "democratic, stable, peaceful, progressive and inclusive Bangladesh". Modi also conveyed New Delhi's concerns regarding the security of religious minorities and urged investigations into attacks on Hindus and other communities. He also expressed that "rhetoric that vitiates the environment is best avoided".

Meanwhile, Bangladesh's Awami League party has condemned the attacks on its processions, arbitrary arrests, and repression targeting its party leaders and activists, and human rights violations allegedly committed under the Yunus-led interim government. The party has announced protest processions and rallies across the country. The Awami League has also alleged that genocide was carried out in the Gopalganj district under the Yunus administration and that the Bangladesh Nationalist Party and its student wing Chhatra Dal, with direct backing from the Yunus administration, carried out attacks on its leaders and activists.

Yunus has assured that his interim government is making comprehensive preparations to ensure free, fair, and peaceful general elections in the first half of February 2026.

On Wednesday, Yunus met with Pakistan's Prime Minister Shehbaz Sharif at the UNGA in New York to discuss strengthening bilateral relations. Sharif extended an invitation to Yunus to visit Pakistan before the conclusion of the interim government's tenure.