India Boosts Development Aid for Key Neighbours in 2025-26 Budget

India's 2025-26 budget focuses on enhancing ties with key neighbours by allocating Rs 2,150 crore to Bhutan, Rs 700 crore to Nepal, and Rs 600 crore to the Maldives. The Ministry of External Affairs received a total of Rs 20,516 crore, indicating a strategic investment in regional connectivity and development.

In a move consistent with India's 'neighbourhood first' policy, Bhutan has received the largest allocation of development aid in the Union Budget for 2025-26, amounting to Rs 2,150 crore. Close behind are Nepal and the Maldives, granted Rs 700 crore and Rs 600 crore, respectively. This strategic distribution of aid underscores India's commitment to strengthening regional ties.

The Ministry of External Affairs witnessed a slight reduction in its overall budget, receiving Rs 20,516 crore compared to the current fiscal's estimate. Nevertheless, the allocation highlights a determined focus on international partnerships, particularly with India's immediate neighbours, with a substantial Rs 4,320 crore designated for this purpose.

Key investments include a sustained commitment to the Chabahar port project, strategic infrastructure, community development projects, and capacity-building initiatives. These efforts aim to foster connectivity, security, and economic growth in the region, reaffirming India's role as a pivotal player in South Asia's development landscape.