One year after the ouster of Sheikh Hasina, Bangladesh is experiencing economic challenges and political uncertainty under the interim government led by Chief Advisor Muhammad Yunus. The regime change was triggered by a crackdown on student protests but reflected deeper public dissatisfaction with the erosion of democratic norms. This political shift has altered Bangladesh's foreign policy, straining its relations with India and disrupting its previous diplomatic balance between India and China. The growing influence of Islamist forces in Bangladesh adds to concerns about regional stability and impacts India's neighborhood policy. Meanwhile, India's strategic environment is complicated by China's support for Pakistan, closer Pakistan-Afghanistan ties, and Taliban activities. The United States' security aid to Pakistan and its designation of Pakistan as a "phenomenal partner" have caused unease in India, especially following the Pahalgam attacks. Canada has renewed its outreach to India amid uncertainties with the US and mistrust of China. India is navigating its role as a bridge-builder amid escalating US-China tensions, trade wars, and emerging parallel economic systems. At the G7 summit, India's engagement with the West has unsettled China, which fears Delhi may lead efforts to find alternative mineral sources to reduce dependence on Chinese exports. India is also seeking a delicate balance with China by improving ties while maintaining strategic precautions, including new energy investment terms that require technology transfer and localization. Youth activists in Bangladesh have played a key role in sustaining the interim government and paving the way for electoral democracy, though the gains remain fragile. The next Bangladesh election is scheduled for 2026.