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India Tops Nepal's Bilateral Donors with $108M Aid in FY 2024-25

India emerged as the largest bilateral donor to Nepal in fiscal year 2024-25, disbursing $107.8 million according to a report from Nepal's Finance Ministry. The United Kingdom and USAID followed as the second and third largest bilateral contributors. Among all donors, including multilaterals, India ranked third overall behind the World Bank and the Asian Development Bank. The report notes India's aid focuses on connectivity, community projects, and education infrastructure.

Key Points: India Leads as Nepal's Top Bilateral Donor: Report

  • India disbursed $107.8 million
  • UK second with $84.2 million
  • USAID third with $67.1 million
  • World Bank top overall donor with $541 million
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India emerges as No 1 bilateral donor to Nepal in FY 2024-25: Report

India disbursed $107.8M to Nepal in FY 2024-25, becoming its largest bilateral donor, ahead of the UK and USAID, a Finance Ministry report shows.

"India remains a primary bilateral development partner for the government, focusing its assistance on connectivity, high-impact community development projects, and educational infrastructure. - Development Cooperation Report"

Kathmandu, March 31

India emerged as the largest bilateral donor to Nepal in fiscal year 2024-25, which ended in mid-July 2025, with the southern neighbour disbursing US$107.8 million, according to a government report.

According to the Development Cooperation Report 2024-25 released by the country's Finance Ministry, the United Kingdom came second with disbursements of US$84.2 million, while USAID ranked third with US$67.1 million.

Japan provided US$58.3 million, and Switzerland disbursed US$30.1 million, ranking fourth and fifth among bilateral donors in fiscal year 2024-25. The annual publication of the Finance Ministry tracks the disbursement of grants, loans, and technical assistance provided by foreign development partners.

According to the report, of the total Indian aid disbursement, US$73.3 million was received in the form of grants, US$25.8 million in loans, and US$8.8 million in technical assistance.

Multilateral donors, including the World Bank and the Asian Development Bank, have traditionally remained the largest contributors to Nepal. The country received a total of US$1.60 billion from both multilateral and bilateral donors in the last fiscal year, the report said.

Even among all donors - both multilateral and bilateral - India ranked third in providing development aid to Nepal. The World Bank topped the list with disbursements of US$541.0 million, followed by the Asian Development Bank with US$443.2 million, and India with US$107.8 million.

Over the past 10 years since fiscal year 2015-16, India's development aid disbursement has fluctuated but followed a largely upward trajectory, the report suggests.

In fiscal year 2023-24, India recorded its highest annual disbursement of the decade at US$118.1 million. The data for fiscal year 2024-25 shows a contraction of 8.7 per cent compared to the previous year.

"India remains a primary bilateral development partner for the government, focusing its assistance on connectivity, high-impact community development projects, and educational infrastructure," the report states.

- IANS

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Reader Comments

S
Sarah B
Interesting data. While it's positive that aid is increasing overall, the 8.7% contraction from last year is a bit concerning. Hope this is just a temporary dip and not a trend.
P
Priya S
Our relationship with Nepal is more than just money. It's about shared culture, open borders, and family ties. This aid strengthens that bond. Good to know most of it is grants, not loans that burden them.
R
Rohit P
With all due respect, while being the top bilateral donor is good, we must ensure transparency. The report says it's for high-impact projects. I hope there's proper tracking so every rupee actually benefits the Nepali people on the ground.
M
Michael C
The scale is still quite small compared to the World Bank and ADB. It puts the $107.8 million in perspective. India's strength is its proximity and understanding of local needs, which the big multilateral banks sometimes lack.
K
Kavya N
Connectivity projects are key! Better roads, rail links, and power transmission between our countries will boost trade and tourism for both sides. That's real, sustainable development. 🙏

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