The Ministry of External Affairs (Mea) has allocated Rs 5,483 crore to foreign countries, which is slightly more than the previous year’s Rs 4,883 crore. The overall budget for Mea is Rs 20,516 crore, with a significant component to neighboring and strategic countries.
The Mea Budget has laid significant emphasis on India’s ‘Neberhood First’ policy. 4,320 crores – 64 percent of the total scheme portfolio – Many initiatives for the country’s immediate neighbors such as hydroelectric plants, power transmission lines, housing, rhodes, bridges and integrated check -posts have been kept for many initiatives.
Bhutan retains the top position
Bhutan remains India’s largest foreign aid recipient to get Rs 2,150 crore in 2025-26. This is an increase in the allocation of Rs 2,068 crore in the previous year. India is as a primary development partner of Bhutan, directed to infrastructure, hydroelectric projects and economic cooperation.
Maldives promoted boost amid diplomatic reset
India’s allocation for Maldives has increased from Rs 400 crore to Rs 600 crore. It comes at a time when the man is trying to form relations with New Delhi after his election victory on the stress of Chinese, a supporter of President Mohammad Muizu after his election victory.
In early 2024, India withdrew its military personnel from Maldives. Now, earlier this month, Maldives Defense Minister Gasan Maumoon visited India, efforts are on to restore cooperation.
Afghanistan’s assistance decreased
Afghanistan has seen its assistance allocation from Rs 200 crore to Rs 2025-26 last year from Rs 100 crore. This is still a sharp fall from Rs 207 crore given two years ago. India has been cautious in its behavior with the Taliban government, which limits its engagement for humanitarian aid and economic cooperation.
Earlier this year, senior diplomat Vikram Misri met with Taliban authorities in Dubai, marking the highest level contact since Jobul’s acquisition. There was a discussion around trade and India’s interest in Iran’s Chabahar port, which serves as an important alternative trade route bypassing Pakistan.
Despite these busyness, India has yet officially recognized the Taliban government.
Myanmar saw the increased assistance
Myanmar allocation increased from Rs 250 crore in the budget of 2024-25 to Rs 350 crore to Rs 2025-26, where ethnic armed groups have controlled huge areas, of which India of India Areas with border borders of the northeastern states.
The Center recently tightened the rules for the movement of people on the Indo-Myanmar border. The new rules limit the movement from 16 km to 10 km from 16 km to 10 km under the free movement governance (FMR).
Other major allocation
India has maintained its allocation for Nepal for Rs 700 crore. The allocation for Sri Lanka saw an increase of Rs. 245 crore to Rs 300 crore, as the crisis—southern neighbor was cured by a economic recession.
Last year, Dhaka’s assistance remains unchanged for Rs 120 crore amid diplomatic rift between the two countries after the previous Bangladesh Prime Minister Sheikh Hasina. Ms. Hasina has been given shelter in India, seeking her return by the government led by Muhammad Yunus.
Last year, the assistance of African countries increased to Rs 225 crore due to Rs 200 crore. The African Union joined the G20 in 2023 when India hosted the summit.
The allocation of Latin America has increased from Rs 30 crore to Rs 60 crore. Last year, Union Foreign Minister Foreign Minister Pabitra Margerita began the nine -day official visit of Mexico, Granada, Barbados and Antigua and Barbuda, underlining deep relations between India, Latin America and Caribbean.
The allocation for Chabahar port in Iran is Rs 100 crore. The port project serves as an important trade route for Afghanistan and Central Asia.
Disaster relief allocation saw an increase of Rs 64 crore from Rs 10 crore in 2024-25 this year. India has been one of the first people to continuously respond to global disaster relief initiatives. India was one of the initial respondents when Turkey witnessed devastating earthquakes in 2023. India also sent relief to flood-hit countries like Laos and Vietnam in 2024.
Beyond direct financial assistance, India is also expanding its soft power outreach. Indian Council for Cultural Relations (ICCR) has received Rs 331 crore from Rs 331 crore last year. The support for international training programs is Rs 1,247 crore.
