Sat Feb 01 13:13:43 UTC 2025: ## India Boosts Foreign Aid Budget to Over Rs 5,400 Crore, Prioritizes Neighbors

**New Delhi, [Date]** – India’s Ministry of External Affairs (MEA) has announced a significant increase in its foreign aid budget for 2025-26, allocating Rs 5,483 crore (approximately $660 million USD), a slight rise from last year’s Rs 4,883 crore. The overall MEA budget stands at Rs 20,516 crore. This increase reflects India’s continued commitment to its ‘Neighbourhood First’ policy, with a substantial portion directed towards regional infrastructure development.

A significant Rs 4,320 crore (64% of the total aid) is earmarked for neighboring countries, funding projects including hydroelectric plants, power transmission lines, roads, bridges, and integrated checkposts.

Bhutan remains the largest recipient, receiving Rs 2,150 crore, an increase from last year’s allocation. The Maldives’ allocation has jumped to Rs 600 crore from Rs 400 crore, signaling a renewed focus on strengthening diplomatic ties following recent tensions.

Conversely, aid to Afghanistan has been reduced to Rs 100 crore from Rs 200 crore, reflecting India’s cautious approach towards the Taliban government. Despite limited engagement, India continues to explore trade routes through the Chabahar Port in Iran.

Myanmar’s allocation increased to Rs 350 crore amidst ongoing internal conflict, while Nepal and Sri Lanka received Rs 700 crore and Rs 300 crore respectively. Aid to Bangladesh remains unchanged at Rs 120 crore, amidst ongoing diplomatic issues. Allocations for African nations and Latin America have also seen increases.

The budget also includes Rs 100 crore for the Chabahar Port project and a significant increase in disaster relief funding, rising from Rs 10 crore to Rs 64 crore. The Indian Council for Cultural Relations (ICCR) received Rs 351 crore for its soft power initiatives, reflecting India’s commitment to expanding cultural exchange. A further Rs 1,247 crore is allocated for international training programs. The increased budget underscores India’s proactive role in global development and diplomacy.

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