In line with India's 'Neighbourhood First' policy, the union government granted the largest share of aid to Bhutan. The Himalayan nation has been allotted ₹2,068 crore in the financial year 2024-25. However, ₹2400 crore was allotted for central sector schemes in Bhutan last year (FY 2023-24).
Bhutan is not the only neighbouring country to witness a decrease from last year's announcement. Bangladesh has been allotted ₹120 crore in the Union Budget FY 2024-2025, a drop from ₹200 crore in FY 2023-2024. Bangladesh is currently witnessing deadly unrest over a government job quota.
The aid for Mauritius also dropped from ₹460 crore in FY 2023-24 to ₹370 crore in FY 2024-2025. The budget for Myanmar declined from ₹400 crore to ₹250 this year. The budget for Myanmar dipped from ₹400 crore to ₹250 this year.
Meanwhile, the outlay for Maldives significantly declined as compared to last year's. In FY 2024-25, the Indian government allotted ₹400 crore to the Maldives for central sector schemes/projects. Last year, the revised budget outlay for Maldives was around ₹770 crore. The budget initially allotted for FY 2023-24 was ₹400 crore.
The diplomatic relations between Maldives and India soured in early January this year. A row between the two countries erupted after a few Maldivian MPs interpreted Prime Minister Narendra Modi's visit to Lakshadweep as a move to sideline Maldives as a tourist destination.
The controversy occurred soon after Mohamed Muizzu took charge as the Maldives' President. Muizzu, who is believed to be close to China, had requested India withdraw its troops stationed in the Maldives – the move which further hit diplomatic ties between India and Maldives.
Besides, the allotment for the Iran's Chabahar Port also remained unchanged at ₹100 crore. Recently, the Chabahar Port in Iran was under the scanner after India and Iran signed a long-term contract for its development after years of negotiations. After the deal, the United States then warned of "potential risk of sanctions" against “anyone".
Meanwhile, the budget allocation for Nepal and Sri Lanka increased. In FY 2024-24, the government allocated ₹700 crore in aid to Nepal, compared to ₹550 crore last year. For Sri Lanka, ₹245 crore has been allotted this year, compared to ₹150 crore from last year.
(Correction: This story initially reported that “the allocation for Maldives remained unchanged as compared to last year. This year, the Indian government allotted ₹400 crore to the Maldives for central sector schemes/projects.” This has been changed to say “the outlay for Maldives significantly declined as compared to last year's” )
