India Strengthens Global Ties with ₹5,483 Crore Foreign Aid Allocation in Union Budget 2025

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New Delhi, Feb 1- In line with its ‘Vishwa Bandhu’ vision, India has allocated ₹5,483 crore for foreign aid in the Union Budget 2025-26, marking a slight increase from last year’s ₹4,883 crore. The Ministry of External Affairs (MEA) has been granted ₹20,516.61 crore, lower than the ₹25,277 crore revised estimate of the previous year, but still maintaining strong financial commitments toward global partnerships, infrastructure development, and diplomatic initiatives.

A key highlight of the budget is the ₹6,750 crore allocation for Overseas Development Assistance (ODA), a 20% increase from ₹5,667.56 crore last year. This funding will be directed toward soft loans, grants, cultural projects, and international training programs, reinforcing India’s role as a reliable development partner. With ₹4,320 crore dedicated to development schemes, India continues to prioritize its Neighbourhood First policy, allocating 64% of this budget to regional projects such as hydropower plants, power transmission lines, integrated check posts, and community development programs.

Among India’s closest allies, Bhutan remains the largest beneficiary with ₹2,150 crore, while Maldives receives the highest increase, from ₹470 crore to ₹600 crore, reflecting India’s continued support in stabilizing its economy. Nepal and Bangladesh receive ₹700 crore and ₹120 crore, respectively, whereas Mauritius’ allocation has been reduced to ₹500 crore from ₹576 crore. Sri Lanka’s aid remains steady at ₹300 crore, while Myanmar’s allocation is reduced from ₹400 crore to ₹350 crore. Seychelles sees a cut from ₹37 crore to ₹19 crore, whereas Afghanistan’s aid has been restored to ₹100 crore after being reduced to ₹50 crore in last year’s revised estimates. Financial assistance to African nations increases to ₹225 crore, and funding for Eurasia and Latin America doubles to ₹100 crore. Disaster relief funding has also been increased from ₹60 crore to ₹64 crore, emphasizing India’s commitment to global humanitarian efforts.

A significant strategic investment of ₹100 crore has been allocated for the development of Chabahar Port in Iran, enhancing India’s connectivity with Central Asia through the International North-South Transport Corridor (INSTC). Meanwhile, India’s diplomatic outreach continues to expand, with a 9% increase in funding for embassies and missions, amounting to ₹4,206.22 crore. The budget for citizen-centric services, including passport issuance and Passport Seva Project 2.0, has nearly doubled to ₹1,913.47 crore, ensuring smoother public service operations.

India’s foreign aid budget reinforces its role as a regional leader and global development partner, aligning with its ‘Neighbourhood First’ and ‘Look East’ policies. Through strategic investments in infrastructure, humanitarian assistance, and diplomatic engagement, India continues to strengthen international ties while expanding its global development footprint.

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