Indian budget sees increased allocation for Nepal

The Indian government’s budget for the Ministry of External Affairs for the fiscal year 2024/25 has increased allocations for Nepal and Sri Lanka while reducing support for other neighboring countries. Nepal stands out as a major beneficiary, poised to receive InRs 7bn, a substantial increase of InRs 1.5bn from the previous year’s revised budget of InRs 6.5bn. 

Sri Lanka’s allocation has also risen significantly to InRs 2.45bn, an increase of InRs 0.95bn from the previous year’s InRs 1.5bn. This boost is crucial for Sri Lanka’s ongoing economic recovery, supported by India’s previous $4bn aid. 

Afghanistan and the Maldives maintain their allocations at InRs 2bn and InRs 4bn, respectively. Afghanistan’s allocation remains stable despite last year’s revised budget of InRs 2.2bn. 

The Maldives saw a notable increase in its revised budget to InRs 7.7bn, indicating ongoing support for infrastructure projects. 

Meanwhile, Bhutan and Myanmar have seen reductions in their aid. Bhutan’s allocation decreased by InRs 3.3bn—yet it still receives the largest share at InRs 20.68bn. Myanmar’s allocation dropped by InRs 1.5bn to InRs 2.5bn, compared to last year’s InRs 4bn, with InRs 3.7bn utilized. Bangladesh’s allocation decreased by InRs 0.8bn to InRs 1.2bn, with only InRs 1.3bn of the previous year’s InRs 2bn utilized. 

Similarly, Iran’s Chabahar port project continues to receive a steady allocation of InRs 1bn, unchanged for the past three years, highlighting its strategic importance for India as a gateway to Afghanistan and Central Asia, bypassing Pakistan.

Indian Finance Minister Nirmala Sitharaman presented the first full-fledged budget of the Prime Minister Narendra Modi-led coalition government on Tuesday. From India Inc to the middle class and job seekers, everyone has high hopes for this budget. Additionally, some policy interventions could significantly boost the country’s economic growth and tackle the growing unemployment issue.

Ahead of the budget, Prime Minister Modi asserted that this budget will lay the foundation of ‘Viksit Bharat’ (Developed India). He also said that this is an important budget for ‘Amrit Kaal’, which means ‘great leap’, and could propel India forward on all fronts.