India's budget allocates Rs 120 crore for aid to Bangladesh

India's Ministry of External Affairs has allocated Rs 5,483 crore for foreign aid from India's budget for the fiscal year 2025-26. This amount is slightly more than the previous year's Rs 4,883 crore. India has allocated only Rs 120 crore from this fund to provide aid to Bangladesh. This information has been revealed from a report by Indian media outlet NDTV.

In the new fiscal year's budget, the Indian government has allocated a total of Rs 20,516 crore for the country's Ministry of External Affairs. Special emphasis has been given to India's 'neighborhood first' policy in this budget. 64 percent of the total funds allocated for foreign aid, i.e. Rs 4,320 crore, have been allocated for neighboring countries. Under this, large infrastructure projects such as hydroelectric projects, power transmission lines, housing, roads, bridges and integrated check posts will be implemented.

Bhutan has retained its position as the country receiving the highest foreign aid from Delhi in India's fiscal year 2025-26. This year, India has decided to provide assistance of Rs 2,150 crore to Bhutan. Last year, Delhi allocated Rs 2,068 crore for Bhutan.

The allocation for another neighbor of India, the Maldives, was Rs 400 crore last year. This time, it has been increased to Rs 600 crore. Although relations have been strained due to Maldivian President Mohamed Mujibur Rahman's pro-China stance, the Maldives is currently trying to improve India-India relations. India withdrew its military personnel from the Maldives in early 2024. However, efforts are underway to re-establish bilateral cooperation with the visit of Maldivian Defense Minister Ghassan Mamun to India earlier this month.

While aid to neighboring Afghanistan has been cut from Rs 200 crore last year to Rs 100 crore this fiscal, India has been cutting aid to Afghanistan for the past two years. India has maintained limited ties with the country, including humanitarian aid and economic cooperation, despite not formally recognising the Taliban government.

Earlier this year, Indian Foreign Secretary Vikram Mishra met Taliban officials in Dubai. This was the highest-level contact in India-Afghanistan relations since the Taliban came to power in Afghanistan. The talks focused on trade and the development of alternative trade routes bypassing Pakistan through Iran's Chabahar port.

India had allocated Rs 250 crore in aid to Myanmar for the 2024-25 fiscal. This time, Rs 350 crore has been allocated for the country. This increase in aid comes in the context of internal unrest in the country and ethnic armed groups taking control of border areas. In addition, the Indian government has tightened the rules for movement along the India-Myanmar border. According to the new rules, the free movement limit for citizens of both countries has been reduced from 16 kilometers to 10 kilometers.

In addition, the allocation for Nepal has been kept unchanged at Rs 700 crore. Assistance for Sri Lanka has been increased from Rs 245 crore to Rs 300 crore. Assistance for Bangladesh has remained unchanged at Rs 120 crore. India-Bangladesh diplomatic relations have been strained since the removal of Sheikh Hasina's government in 2024. India granted political asylum to Sheikh Hasina, and the Muhammad Yunus-led government in Dhaka has demanded her return.