India allocates INR 3 billion in aid to Sri Lanka in 2025 Budget

The India’s Ministry of External Affairs (MEA) has allocated INR 54,830 million for aid to foreign nations, higher than last year’s budget estimate of INR 48,830 million, but lower than last year’s revised estimate of INR 58,060 million.

Meanwhile, Sri Lanka saw an increase in its aid allocation at INR 3,000 million from last year’s budget estimate of INR 2,450 million.

The overall budget for the MEA stands at INR 20,516 crore — lower than the budget estimate of INR 22,154 crore and revised estimate of INR 25,277 crore, for the year 2024-2025.

Sources said that at this stage, no allocation has been made towards EXIM bank provisioning in MEA’s budget but may be done at a later phase if the need arises. This allocation of INR 20,516.61 crore is an increase of 15.45 % in comparison to last year’s budget without the allocation towards EXIM bank provisioning, sources said.

The MEA budget has placed an emphasis on India’s ‘Neighbourhood First’ policy. INR 4,320 crore — 64 per cent of the total scheme portfolio — has been earmarked for the country’s immediate neighbouINR for initiatives like large infrastructure projects such as hydroelectric plants, power transmission lines, housing, roads, bridges and integrated check-posts.

Bhutan continues to be India’s largest foreign aid recipient, receiving INR 2,150 crore in 2025-26, which is an increase from last year’s budget estimate of INR 2,068 crore. Although, this is a decrease from last year’s revised estimate of INR 2,543 crore. India’s allocation for the Maldives has increased from INR 400 crore (budget estimate) and INR 470 crore (revised estimate) to INR 600 crore.

Afghanistan has seen its aid allocation decrease from last year’s budget estimate of INR 200 crore to INR 100 crore. But, it is an increase from INR 50 crore of revised estimates. Afghanistan has been allocated an aid of INR 100 crore, which is a decrease from last year’s budget estimate of INR 200 crore but an increase from INR 50 crore of revised estimate.

Myanmar’s allocation increased from INR 250 crore in the 2024-25 budget to INR 350 crore for 2025-26. However, the aid has decreased from last year’s revised estimate of INR 400 crore.

India has maintained its allocation for Nepal at INR 700 crore. Meanwhile, Sri Lanka saw an increase in its aid allocation at INR 300 crore from last year’s budget estimate of INR 245 crore.

Aid to Bangladesh remains unchanged at INR 120 crore while aid to African nations rose to INR 225 crore from last year’s INR 200 crore.

Latin America’s allocation has been reduced from last year’s INR 90 crore to INR 60 crore. However, the initial budget estimate was INR 30 cr. The allocation for Chabahar Port in Iran remains at INR 100 crore.

(Source: The Indian Express)