Despite recent strains in bilateral relations, India has maintained its aid allocation for Bangladesh at Rs120 crore in the 2025-26 fiscal year, according to a report by NDTV on Sunday (2 February).
The overall foreign aid budget, managed by India’s Ministry of External Affairs, stands at Rs5,483 crore—modestly increased from last year’s Rs4,883 crore.
Among India’s neighbours, Bhutan remains the largest recipient of assistance, with an allocation of Rs2,150 crore, slightly lower than the previous year’s Rs2,068 crore.
Maldives has witnessed a significant increase, receiving Rs600 crore this year compared to Rs400 crore last year.
This comes despite tensions between the two nations over Malé’s growing tilt towards China, with recent efforts to mend ties with New Delhi.
Meanwhile, aid to Afghanistan has been slashed from Rs200 crore last year to Rs100 crore this year, marking a continued reduction in assistance for the war-torn nation. Myanmar, on the other hand, has received an increased allocation of Rs350 crore, up from Rs250 crore in the previous budget.
Nepal’s aid remains unchanged at Rs700 crore, while Sri Lanka’s allocation has risen from Rs245 crore to Rs300 crore.
African nations have also seen a marginal increase in Indian assistance, with their allocation growing from Rs200 crore to Rs225 crore.
India’s Ministry of External Affairs has been allocated Rs20,516 crore in the new budget, reinforcing the "Neighbourhood First" policy, with 64% of the total foreign aid—Rs4,320 crore—directed towards neighbouring countries.
The funding will support large-scale infrastructure projects, including hydropower plants, power transmission lines, housing initiatives, roads, bridges, and integrated checkpoints.
In addition to direct financial aid, India is expanding its "soft power" diplomacy.
Indian Council for Cultural Relations (ICCR) has received Rs351 crore this year, compared to Rs331 crore last year, while Rs1,247 crore has been allocated for international training programmes.
