India's foreign aid up by 20%, bhutan tops list, slash in funds to afghanistan, myanmar

India's foreign aid up by 20%, bhutan tops list, slash in funds to afghanistan, myanmar


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NEW DELHI: The government has allocated Rs 6,750 crore to the Ministry of External Affairs (MEA) for overseas development projects in the 2025 Union Budget, marking a 20% increase over the


Rs 5,667 crore allocated in the previous year. India’s international development efforts are carried out through various mechanisms such as Lines of Credit, the Concessional Finance Scheme,


and Grant-in-Aid projects, with the objective of strengthening its geopolitical interests. The Indian funding supports infrastructure projects and capacity building projects. A significant


64% of the allocated funds for external development projects will be directed towards India's immediate neighbours under the ‘Neighbourhood First’ policy. Bhutan remains the largest


recipient of India’s foreign aid, with an allocation of Rs 2,150 crore for 2025-26, up from Rs 2,068 crore last year. Despite a reduction in overall foreign aid, Bhutan continues to be


India’s key development partner, with funding focused on infrastructure, hydropower projects, and economic cooperation. India has also increased its aid to the Maldives, raising the


allocation from Rs 470 crore to Rs 600 crore. This increase coincides with the Maldives’ efforts to reset its ties with India.