India allocates ₹300 crore to SL in union budget 2024

India maintained its developmental aid to Sri Lanka at Rs 300 crore in the Union Budget 2025, reaffirming its commitment to supporting the island nation’s economic recovery.

Sri Lanka’s economic recovery efforts continue, with India’s steady aid allocation underscoring the significance of strong bilateral relations and regional stability.

The Maldives received the highest increase in developmental aid among South East Asian nations, reflecting India’s intent to rebuild diplomatic ties after a turbulent phase in 2024.

Following a diplomatic fallout in early 2024, India’s aid to the Maldives was initially reduced but later increased by nearly 28% in the 2025 Budget, signaling a renewed partnership.

The allocation for the Maldives in 2025-26 stands at Rs 600 crore, marking a substantial rise from the previous fiscal year’s Rs 470 crore, as per the Budget document.

Aid to the Maldives fluctuated in 2024, with an initial allocation of Rs 600 crore in the interim Budget, later cut to Rs 400 crore after the Modi government’s re-election, and eventually revised to Rs 470 crore.

Diplomatic tensions between India and the Maldives escalated after Maldivian leaders criticized PM Modi’s visit to Lakshadweep, viewing it as an attempt to divert tourism from their country.

Relations improved after Maldivian President Mohamed Muizzu’s visit to India, where he acknowledged India’s role as a key partner, paving the way for increased aid in the 2025 Budget.

Bhutan remains the largest recipient of India’s developmental aid, receiving Rs 2,150 crore in the 2025 Budget, in line with India’s ‘Neighbourhood First’ policy.

Nepal, Maldives, and Mauritius also received significant allocations, with Rs 700 crore, Rs 600 crore, and Rs 500 crore, respectively, while Myanmar saw a budget cut to Rs 350 crore.

India’s aid to African countries increased modestly, rising from Rs 200 crore to Rs 225 crore, reflecting its growing engagement with the continent.

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