New Delhi, India

The Indian government’s budget allocation for the Ministry of External Affairs in the fiscal year 2024-2025 has marked increased allocations to Nepal, Sri Lanka, and Seychelles, with a drop in support for other neighbouring countries.

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The increase is dependent on the needs and requirements of each country. These allocations are intended for infrastructure support and development projects.

Increased Allocations

Nepal stands out as a significant beneficiary with an allocation of Rs 700 crore, marking a substantial increase of Rs 150 crore from the previous year's budget of Rs 550 crore, which was later revised to Rs 650 crore.  

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Sri Lanka has also seen a noteworthy increase in its allocation, with Rs 245 crore earmarked for FY 2024-2025, up by Rs 95 crore from last year’s allocation of Rs 150 crore. This rise comes as Sri Lanka continues to navigate economic recovery, and India's support is seen as crucial in these efforts. Delhi had provided a support of $4 billion to aid Colombo's recovery. 

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Seychelles has received an additional Rs 30 crore, bringing its total allocation to Rs 40 crore from the previous financial year's Rs 10 crore. This increase, although modest, signals India’s continued interest in strengthening ties with the Indian Ocean region.

Steady Allocations

Afghanistan and the Maldives have not seen any changes in their allocations, remaining at Rs 200 crore and Rs 400 crore, respectively. For Afghanistan, the allocation holds steady despite a revision in the previous year's budget to Rs 220 crore, reflecting a responsive approach to the people of Afghanistan despite Taliban rule. India has in recent months sent wheat to the country. 

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The Maldives also saw a significant increase in the revised budget for FY 2023-2024, rising to Rs 770.90 crore, indicating ongoing support for its major infrastructure projects.

Decreased Allocations

Bhutan and Myanmar have experienced reductions in their aid. Bhutan’s allocation has decreased by Rs 332.02 crore, and similarly, Myanmar’s budget has been reduced by Rs 150 crore to Rs 250 crore. Last year, Myanmar received Rs 400 crore, with Rs 370 crore being utilised. Despite the cut for Bhutan, the Himalayan country continues to get the lion's share of India's allocation at Rs 2068.56 crore.

Bangladesh has seen its allocation drop by Rs 80 crore to Rs 120 crore.

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The previous year saw an allocation of Rs 200 crore, with only Rs 130 crore utilised. Mauritius and Mongolia are also on the list of countries receiving decreased aid. Mauritius’ allocation is reduced by Rs 90.79 crore, now standing at Rs 370 crore, and Mongolia’s allocation sees a minimal reduction of Rs 2 crore.

Strategic Continuity

The Chabahar port project in Iran continues to receive a steady allocation of Rs 100 crore, unchanged for the past three years. This consistent funding underscores the strategic importance India places on the port as a critical gateway to Afghanistan and Central Asia, bypassing Pakistan.