India has earmarked an annual grant of INR 8 billion (approximately Rs 12.91 billion) for Nepal in its 2026 federal budget, presented by Finance Minister Nirmala Sitharaman. The allocation mirrors the initial amount provided in the previous fiscal year. The budget also underscores the Varanasi–Siliguri rail corridor, expected to lower trade costs for Nepal. In addition, India has waived import duties on 17 cancer drugs and seven medicines for rare diseases, offering relief to Nepali patients seeking treatment in India. Bhutan remains the largest beneficiary, receiving INR 22.88 billion.
