India has increased its development assistance to Nepal in the central budget for the upcoming fiscal year, signaling a continued focus on regional cooperation under its “Neighborhood First” policy.
The grant to Nepal has been raised to INR 8 billion, an increase of INR 100 million over last year. Analysts say the boost is expected to strengthen bilateral collaboration in infrastructure, cross-border development projects, and social sectors.
Alongside Nepal, India has increased aid to Bhutan, Sri Lanka, and Afghanistan, reflecting its emphasis on regional partnerships. Sri Lanka is set to receive INR 4 billion, also INR 100 million higher than the previous year, aimed at supporting economic revival.
Aid to Afghanistan rises by INR 500 million, taking the total to INR 1.5 billion. Assistance to Mauritius increases to INR 550 million, while Mongolia’s allocation grows to IRS 750 million. Seychelles continues to receive INR 190 million.
However, aid to some neighbors has decreased. Bangladesh’s grant is halved to INR 600 million, prompting concerns over project implementation and absorption capacity. Grants to the Maldives and Myanmar have been reduced to INR 550 million and INR 300 million, respectively. Overall, the Ministry of External Affairs’ budget has increased slightly to INR 22,189.77 crore from last year’s INR 20,516.61 crore.
