India now has Rs 600 crore instead of Rs 470 crore for the Maldives. This occurs while Male is trying to restore relations with New Delhi
A little less than the amended Rs 5,806 crore from the previous year, the Ministry of External Affairs (MEA) has allotted Rs 5,483 crore for help to foreign countries. Aid to strategic and neighbouring nations continues to be a vital part of the MEA’s overall budget of Rs 20,516 crore.
Bhutan Maintains Its Top Position
With Rs 2,150 crore in 2025–2026, Bhutan is India’s top beneficiary of foreign aid. This is less than the amended allocation of Rs 2,543 crore from the previous year, though. India continues to be Bhutan’s key development partner despite the decline, providing funds for economic cooperation, hydroelectric projects, and infrastructure.
Boost for the Maldives During the Diplomatic Reset
India now has Rs 600 crore instead of Rs 470 crore for the Maldives. Following difficulties over President Mohamed Muizzu’s pro-China posture following his election victory, Male is currently working to restore relations with New Delhi.
India removed its armed forces from the Maldives at the beginning of 2024. Now, attempts are being made to re-establish collaboration when Maldivian Defence Minister Ghassan Maumoon visited India earlier this month.
The Aid to Afghanistan Doubles
Afghanistan will get Rs 100 crore in aid in 2025–2026, up from Rs 50 crore the previous year. Compared to the Rs 207 crore awarded two years ago, this is a significant drop. India has limited its interactions with the Taliban regime to economic collaboration and humanitarian assistance out of caution.
In the highest-level meeting since Kabul’s takeover, senior diplomat Vikram Misri met with Taliban officials in Dubai earlier this year. Trade and India’s interest in Iran’s Chabahar Port, a vital alternate trade route that avoids Pakistan, were the main topics of discussion.
India has not yet formally recognised the Taliban government in spite of these interactions.
Aid to Myanmar Has Dropped
Amid the current unrest in Myanmar, where ethnic armed groups have seized control of large swaths of territory, including parts bordering the northeastern states of India, the country’s contribution was reduced from Rs 400 crore in the revised 2024–25 budget to Rs 350 crore for 2025–26.
Recently, the Centre strengthened the regulations governing cross-border travel between India and Myanmar. Under the free movement regime (FMR), the new regulations limit mobility from 16 km to 10 km on either side.
Additional Important Allocations
The amount that India has set aside for Nepal remains at Rs 700 crore. As Sri Lanka, the southern neighbour affected by the crisis, recovers from an economic collapse, the allotment for the country stays at Rs 300 crore.
Amid a diplomatic rupture between the two nations following the removal of former Bangladesh Prime Minister Sheikh Hasina last year, aid to Dhaka has remained constant at Rs 120 crore. The government of Muhammad Yunus has demanded that Ms. Hasina return to India, where she has been granted shelter.
The amount allotted to Latin America has decreased from Rs 90 crore to Rs 60 crore, while aid to African countries has increased from Rs 200 crore to Rs 225 crore. The African Union joined the G20 in 2023 when India hosted the summit, and the amount allotted to Iran’s Chabahar Port, which is a crucial trade route to Afghanistan and Central Asia, has remained at Rs 100 crore.
The amount allotted for disaster relief increased by Rs 4 crore from Rs 60 crore to Rs 64 crore this year. When it comes to responding to international disaster relief efforts, India has always been among the first. When devastating earthquakes struck Turkey in 2023, India was one of the first countries to respond. In 2024, India also sent aid to nations affected by flooding, including as Vietnam and Laos.
India is increasing its soft power outreach in addition to providing direct financial help; the Indian Council for Cultural Relations (ICCR) has received Rs 351 crore, up from Rs 331 crore the previous year, and Rs 1,247 crore is being provided for support for international training programs.
