India's Union Budget for 2025, revealed by Finance Minister Nirmala Sitharaman, underlines the country's commitment to foreign aid and regional diplomacy, with allocations totaling Rs 5,483 crore for foreign assistance. This amount reflects a slight dip from the previous year's allocation of Rs 5,806 crore but maintains a focus on strengthening ties with neighboring countries.
The budget aligns with the broader objectives encapsulated by GYAN, which emphasizes support for the underprivileged, youth, farmers, and women. To reiterate this commitment, significant increases have been issued particularly for nations such as the Maldives and Bhutan, following recent shifts toward elevatory bilateral cooperation.
Bharat's relationship with the Maldives has received notable attention, as the budget has allocated Rs 600 crore for the island nation, up from Rs 470 crore last year. This increase, amounting to roughly 27% more funding, indicates India's strategic pivot to mend ties following tensions stemming from President Mohamed Muizzu's pro-China policy.
Historically, the relationship between India and the Maldives has been multifaceted, and attempts to restore collaboration were evident with high-level discussions, including the recent meeting between the Maldivian Defence Minister Ghassan Maumoon and Indian officials. The budget reflects this diplomacy, showcasing India's intention to stabilize bilateral relations.
Bhutan remains the largest recipient of India's foreign aid, with the allocation set at Rs 2,150 crore for the upcoming fiscal year. This marks a slight increase from the previous allocation of Rs 2,068 crore. This aid primarily supports infrastructure and economic development projects, reinforcing India's role as Bhutan's principal development partner.
Afghanistan's allocation, meanwhile, has seen significant changes. The aid has been halved from last year's Rs 200 crore, dropping to Rs 100 crore for 2025-26. This reduction correlates with India's cautious approach to engaging with the Taliban regime, as its primary focus remains on humanitarian assistance.
Despite these challenges, Afghanistan has maintained discussions with Indian officials on key interests, including the operational dynamics of the Chabahar Port project, which serves as an instrumental trade route connecting India with Central Asia.
Myanmar's relationship has similarly required adjustments, with funding reduced from Rs 400 crore to Rs 350 crore due to continued unrest and contested governance following the military coup. Notably, the tightening of border regulations along the India-Myanmar frontier showcases India's concern over the security and political ramifications of Myanmar's instability.
Other countries receiving support include Nepal, with funding remaining stable at Rs 700 crore, and Sri Lanka, which continued to receive Rs 300 crore as it navigates its own economic recovery.
Bangladesh’s funding has not increased, remaining static at Rs 120 crore, reflecting the existing diplomatic tensions, particularly following the asylum granted to former Prime Minister Sheikh Hasina.
On the African continent, India's aid allocation has increased to Rs 225 crore, mirroring its strategic engagement within the region. Allocation for Latin America has also increased, doubling from Rs 30 crore to Rs 60 crore, underlining India's global outreach initiatives.
The Union Budget for 2025 reiterates India's soft power strategies beyond direct financial aid. The Indian Council for Cultural Relations will see its funding rise from Rs 331 crore to Rs 351 crore, aimed at fostering cultural ties and training programs. Enhancements to international cooperation and disaster relief efforts, now pegged at Rs 64 crore, showcase India's growing role as a global humanitarian actor.
Overall, India's foreign aid allocations signify not just monetary assistance but also convey diplomatic goodwill aimed at fostering regional connectivity and cooperation. This budget reinforces India's strategic priorities as it navigates complex international relations, aiming for stability and mutual prosperity in every corner of its neighborhood.