Dhaka, May 21 -- India's long-standing strategy of consolidating regional influence through partisan alliances is unraveling, as Bangladesh - historically aligned with New Delhi - pivots toward deeper engagement with Pakistan.

This recalibration comes in the wake of Prime Minister Sheikh Hasina's ouster and the rise of an interim government led by Nobel laureate Muhammad Yunus.

Yunus's administration has, in short order, brought relative calm to a country rocked by years of economic mismanagement and authoritarian rule.

The economy is stabilizing, payments have resumed to foreign entities, including India's Adani and Reliance power projects that had been unpaid for nine months, and diplomatic overtures have diversified beyond India's sha...