Finances 2025: The Ministry of Exterior Affairs has allotted Rs 5,483 crore for international support within the Union Finances 2025-26, up from Rs 4,883 crore final yr. This monetary yr, ‘Neighbourhood First’ and ‘Look East’ insurance policies appears to drive India’s support priorities.
A whooping 64% of the entire scheme portfolio (Rs 4,320 crore) has been allotted to its fast neighbors for numerous initiatives, together with main infrastructure tasks like hydroelectric vegetation, energy transmission strains, housing, roads, bridges, and built-in check-posts.
Bhutan: Prime Recipient
Bhutan stays India’s high recipient of international support, with an allocation of ₹2,150 crore for 2025-26, up from ₹2,068 crore final yr. India continues to be Bhutan’s key improvement associate, offering monetary help for infrastructure, hydropower tasks, and financial collaboration.
Maldives Support Surge Amid Diplomatic Thaw
New Delhi has elevated its monetary help to the Maldives by Rs 130 crore, elevating the entire support to Rs 600 crore from Rs 470 crore within the 2024-25 finances. This makes the Maldives one of many largest beneficiaries of India’s international support, second solely to Bhutan in precedence amongst neighboring nations.
This improve comes at a time when Malé is actively working to rebuild its relationship with New Delhi, following a interval of diplomatic tensions that arose after the election of President Mohamed Muizzu, who dominantly places ahead a pro-China stance.
Prime Recipients of International Support
- Bhutan – Rs 2,150 crore (highest allocation however decrease than final yr’s Rs 2,543.48 crore).
- Maldives – Rs 600 crore, a major improve from Rs 470 crore final yr.
- Nepal – Rs 700 crore (similar as final yr).
- Mauritius – Rs 500 crore, diminished from Rs 576 crore.
- Sri Lanka – Rs 300 crore (similar as final yr).
- Myanmar – Rs 350 crore, diminished from Rs 400 crore.
- Bangladesh – Rs 120 crore (similar as final yr).
- Afghanistan – Rs 100 crore, restored from Rs 50 crore.
- Seychelles – Rs 19 crore, diminished from Rs 37 crore.
Support To Bangladesh Unchanged
India has retained its monetary support to Bangladesh at Rs 120 crore for 2025-26, with no improve from the earlier yr. The choice comes amid diplomatic tensions following the exit of former Prime Minister Sheikh Hasina, who has been granted asylum in India.
The brand new authorities, led by Muhammad Yunus, has formally requested her return, including to the continuing political pressure between the 2 nations.
India’s Cautious Strategy With Afghanistan
India has considerably diminished its monetary support to Afghanistan, slicing the allocation from Rs 200 crore final yr to Rs 100 crore within the 2025-26 finances—a steep drop from Rs 207 crore granted two years in the past. The transfer displays Prime Minister Narendra Modi’s cautious method towards the Taliban regime, with its engagement largely restricted to humanitarian support and financial cooperation.
Earlier this yr, Deputy Nationwide Safety Adviser Vikram Misri held talks with Taliban officers in Dubai, marking the highest-level interplay for the reason that group’s takeover of Kabul. The discussions targeted on commerce and India’s strategic pursuits in Iran’s Chabahar Port, a key transit hub that provides an alternate commerce route bypassing Pakistan.
Regardless of these engagements, India has but to increase official recognition to the Taliban authorities.
