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India Boosts Aid to Nepal, Afghanistan; Cuts Bangladesh Support in Budget

India's latest Union Budget has reshaped its foreign development aid, increasing allocations for neighbours like Nepal, Afghanistan, and Bhutan. However, financial support for Bangladesh has been sharply reduced by half, and cuts have also been applied to the Maldives and Myanmar. The overall budget for the Ministry of External Affairs has been increased significantly, reflecting continued diplomatic engagement. Finance Minister Nirmala Sitharaman presented the budget, outlining three core duties focused on economic acceleration and empowering the disadvantaged.

Key Points: India's Budget 2026-27: Aid Up for Nepal, Afghanistan, Down for Bangladesh

  • Aid to Nepal increased by Rs 100 crore
  • Afghanistan allocation up 50% to Rs 150 crore
  • Bangladesh support halved to Rs 60 crore
  • MEA's overall budget sees significant rise
  • Focus on empowering poor and disadvantaged
2 min read

India increases budget allocation for Nepal, Afghanistan but cuts amount for Bangladesh

India's Union Budget 2026-27 increases development aid for Nepal, Afghanistan, and Bhutan but reduces allocations for Bangladesh, Maldives, and Myanmar.

"we are inspired by three Kartavyas - Finance Minister Nirmala Sitharaman"

New Delhi, Feb 1

The Union Budget 2026-27 has increased Indian development aid allocations for several neighbouring nations like Afghanistan, Mongolia and Nepal, but allocations to Bangladesh have been slashed by Rs 60 crore.

India has increased financial support for Bhutan to Rs 2,288.56 crore, while for Afghanistan, the sum has been increased from Rs 100 crore to Rs 150 crore, indicating that more Indian projects are in the pipeline for the country.

India has allocated Rs 800 crore to Nepal, up by Rs 100 crore, while an amount of Rs 400 crore has been announced for Sri Lanka, up from Rs 300 crore in the last budget. In the latest budget, India has increased financial support for Mongolia by Rs 20 crore from Rs 5 crore to Rs 25 crore.

India has reduced the support for Bangladesh from Rs 120 crore to Rs 60 crore, while financial support to the Maldives has been reduced from Rs 600 crore to Rs 550 crore. India has also reduced financial support for Myanmar from Rs 350 crore to Rs 300 crore.

India has reduced financial support for Eurasian countries to Rs 38 crore, while the financial support for Latin American nations has been increased to Rs 120 crore.

In the latest Union budget, the Ministry of External Affairs' (MEA) overall budget has been increased from Rs 20,516.62 to Rs 22,118.97 crore.

Presenting the Budget in the parliament on Sunday, Finance Minister Nirmala Sitharaman shared three 'Kartavyas' (duties) to not only accelerate the economy but also empower the poor, underprivileged, and the disadvantaged.

Sitharaman said that to deliver on the government's 'sankalp' (resolve) and given that this is the first budget prepared in Kartavya Bhavan, "we are inspired by three Kartavyas".

- IANS

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Reader Comments

P
Priyanka N
Budgets reflect priorities. Maybe the reduction for Bangladesh is because they are doing well economically and need less direct aid? Meanwhile, supporting Afghanistan is crucial for countering terrorism in the region. Good overall allocation for the MEA.
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Aman W
While I understand foreign policy needs, I respectfully disagree with cutting aid to Bangladesh by 50%. They are a key partner in the Northeast and on water sharing. This sends a confusing signal. Our diplomacy should be consistent.
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Sarah B
The increase for Nepal is welcome! So many cross-border projects and cultural exchanges depend on this. Bhutan getting the highest allocation shows the special relationship is intact. Foreign aid is an investment in peace.
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Vikram M
Clearly a budget focused on strategic interests. Aid is not charity, it's a tool. The cuts to Maldives and Myanmar are also notable. We must ensure every rupee spent abroad benefits India's security and economic goals. Jai Hind! 🇮🇳
K
Kriti O
Hope the increased budget for the External Affairs ministry is used effectively. Soft power is important. But I also hope domestic welfare schemes don't get neglected in favour of foreign spending. Balance is key.

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