The Indian government has slashed the financial aid provided to some neighbouring countries, including the Maldives, Myanmar, Bangladesh, and Afghanistan, for the year 2024-25. At the same time, it has significantly increased grants for Sri Lanka, Mauritius, Seychelles, and Nepal.
The strained ties between India and Maldives have adversely impacted the financial assistance provided to Maldives. The Union Budget documents show that the quantum of aid provided to this nation of islands has been cut by 48 per cent for the 2024-25 fiscal when compared to last year. The budget has allocated £40 mn as “grants” to Maldives during the current fiscal which is a far cry from the £77 mn extended a year ago.
This year’s maximum aid has been proposed to be given to Bhutan. The tiny country nestled in the Himalayas will receive £206.8 mn during 2024-25, which includes a grant of £107.8 mn and a loan of £98.9 mn. This is 14 per cent less compared to £239.9 mn given by India during 2023-24.
Bhutan, Bangladesh, Afghanistan and Myanmar are also slated to get fewer grants. Among the countries expected to receive more grants from India include Nepal, Sri Lanka, Seychelles and Mauritius.
Meanwhile, India will continue to provide a grant of £10 mn for the Chabahar port in Iran, for which India and Iran recently signed a 10-year contract for port operations. It will also provide £20 mn to “African countries”, £3 mn to Latin American countries and an additional £2 mn to Eurasian countries.
