sb.scorecardresearch

Updated 00:12 IST, February 2nd 2025

India's Diplomatic Outreach In Budget 2025: Major Aid Boost Maldives, Jolt To Bangladesh

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has allocated funds for India's neighbouring countries.

Reported by: Digital Desk
Follow: Google News Icon
  • share
India's Diplomatic Outreach In Budget 2025: Major Aid Boost Maldives, Jolt To Bangladesh
India's Diplomatic Outreach In Budget 2025: Major Aid Boost Maldives, Jolt To Bangladesh | Image: PTI

New Delhi: The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman , has allocated funds for India's neighbouring countries. The budget reveals India's diplomatic priorities, with some countries receiving a substantial increase in aid. The budget allocation for neighbouring countries reveals a major shift in India's foreign policy, with some countries receiving a substantial increase in aid, while others face a decline.

Maldives, which had a strained relationship with India last year, has received a 27 percent increase in aid allocation to Rs 600 crore. A government official stated, "The allocation of Rs 600 crore to Maldives is a significant increase, reflecting India's commitment to strengthening ties with its neighbours." 

Bhutan remains one of India's top priorities, with an allocation of Rs 2,150 crore. This funding is aimed at infrastructure development, hydropower projects, and economic cooperation. "Bhutan is a key partner for India, and this allocation reflects our commitment to supporting Bhutan's development," said the official.

Afghanistan has received a 50 percent increase in aid allocation to Rs 100 crore. India's allocation of funds for Afghanistan indicates its continued engagement with Afghanistan, despite not recognising the Taliban government. "India remains committed to supporting the people of Afghanistan, and this allocation reflects our efforts to promote peace and stability in the region," said the official.

However, not all countries have been as fortunate. Bangladesh's aid allocation remains at Rs 120 crore, despite tensions following the ouster of Sheikh Hasina in August 2024. Myanmar's aid allocation has declined by 12 percent to Rs 350 crore, amidst ongoing civil war and tensions along the India-Myanmar border. Sri Lanka's aid allocation remains unchanged at Rs 300 crore.

Nepal receives the second-highest aid from India, with an allocation of Rs 700 crore, unchanged from last year. Mauritius and Seychelles have seen a decline in aid allocation, while aid to African Nations has increased to Rs 225 crore.

The Union Budget 2025 reflects India's efforts to strengthen ties with its neighbours, while also pursuing its strategic interests in the region. A look at India's Budget allocations for its neighbouring countries:

Maldives: A Major Beneficiary

Maldives has emerged as one of the biggest winners in the Union Budget 2025, with a 27 percent increase in aid allocation to Rs 600 crore. This significant increase comes after a period of strained relations between India and Maldives, following President Mohamed Muizzu's pro-China stance. However, efforts to restore ties have been underway, with External Affairs Minister S Jaishankar visiting Maldives in August and Muizzu visiting India in October.

Bhutan: A Consistent Priority

Bhutan remains one of India's top priorities, with an allocation of Rs 2,150 crore, making it the largest recipient of Indian aid. This funding is aimed at infrastructure development, hydropower projects, and economic cooperation.

Afghanistan: A 50% Increase

Afghanistan has received a 50 percent increase in aid allocation to Rs 100 crore, despite India not recognising the Taliban government. This move indicates India's continued engagement with Afghanistan, with Foreign Secretary Vikram Misri meeting Taliban officials in Dubai last month.

Jolt To Bangladesh, Myanmar, and Sri Lanka

Bangladesh, Myanmar, and Sri Lanka have not been as fortunate, with their aid allocations remaining unchanged or declining. Bangladesh's aid allocation remains at Rs 120 crore, despite tensions following the ouster of Sheikh Hasina in August 2024. Myanmar's aid allocation has declined by 12 percent to Rs 350 crore, amidst ongoing civil war and tensions along the India-Myanmar border. Sri Lanka's aid allocation remains unchanged at Rs 300 crore.

Other Neighbouring Countries

Nepal receives the second-highest aid from India, with an allocation of Rs 700 crore, unchanged from last year. Mauritius and Seychelles have seen a decline in aid allocation, while aid to African Nations has increased to Rs 225 crore.

Overall, the Union Budget 2025 reflects India's efforts to strengthen ties with its neighbours, while also pursuing its strategic interests in the region.

Get Current Updates on India News, Entertainment News along with Latest News and Top Headlines from India and around the world.

 

Published 23:05 IST, February 1st 2025