Sat Feb 01 17:34:01 IST 2025: ## India Boosts Foreign Aid Budget to Rs 5,483 Crore, Prioritizing Neighbors

**NEW DELHI** – India’s Ministry of External Affairs (MEA) has announced a significant increase in its foreign aid budget for the 2025-26 fiscal year, allocating Rs 5,483 crore (approximately $660 million USD), a slight rise from last year’s Rs 4,883 crore. This forms a key part of the MEA’s overall budget of Rs 20,516 crore. The increased spending reflects India’s commitment to its “Neighbourhood First” policy, with a substantial portion directed towards regional development projects.

A significant Rs 4,320 crore (64% of the total aid) is earmarked for immediate neighbors, focusing on large-scale infrastructure projects including hydroelectric plants, power transmission lines, roads, bridges, housing, and integrated checkposts.

Bhutan remains the largest recipient, receiving Rs 2,150 crore, an increase from last year’s allocation. This underscores India’s role as Bhutan’s primary development partner.

India’s aid to the Maldives has increased to Rs 600 crore from Rs 400 crore, coinciding with efforts to mend diplomatic ties following recent tensions. Conversely, aid to Afghanistan has been reduced to Rs 100 crore from Rs 200 crore, reflecting cautious engagement with the Taliban government. Aid to Myanmar has increased to Rs 350 crore amid ongoing internal conflict.

Other key allocations include Rs 700 crore for Nepal, Rs 300 crore for Sri Lanka (up from Rs 245 crore), and Rs 120 crore for Bangladesh. Aid to African nations has increased to Rs 225 crore, while Latin America’s allocation has been reduced to Rs 60 crore. The allocation for the Chabahar Port in Iran remains at Rs 100 crore.

The budget also includes a substantial increase in disaster relief funding, rising from Rs 10 crore to Rs 64 crore. Furthermore, the Indian Council for Cultural Relations (ICCR) received Rs 351 crore, and funding for International Training Programs stands at Rs 1,247 crore. These increases demonstrate India’s broader commitment to soft power initiatives alongside its development assistance programs.

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