New Delhi, (IANS): The Ministry of External Affairs (MEA) has allocated Rs 5,483 crore for aid to foreign nations, slightly higher than last year's Rs 4,883 crore, it was announced in the Union Budget 2025-26 on February 1.
The MEA has been allocated Rs 20,516.61 crore, which is lower than the revised estimate of Rs 25,277 crore for 2024-25.
As much as Rs 6,750 crore constitutes the Overseas Development Assistance portfolio, which is up 20 per cent from last year's Rs 5,667.56 crore. This includes a budget for soft loans, grants for foreign countries, funding for cultural and heritage projects, and international training programmes.
Bhutan, arguably India's closest partner, gets the biggest share of the external aid budget with Rs 2,150 crore. The previous year's revised outlay stood at Rs 2,543.48 crore.
Maldives, on the other hand, has received the maximum increase in assistance, from Rs 470 crore in the revised 2024-25 budget to Rs 600 crore in 2025-26.
Sri Lanka also gets the same amount as last year, which is Rs 300 crore.
Myanmar's allocation too has been reduced from Rs 400 crore to Rs 350 crore while Seychelles' aid has been reduced from Rs 37 crore to Rs 19 crore.
Afghanistan's aid, which was cut from Rs 100 crore to Rs 50 crore in the revised 2024-25 Budget, has been restored to Rs 100 crore.
While the allocation for African countries has gone up from Rs 200 crore to Rs 225 crore.
The assistance grants for countries in Eurasia and Latin America have been doubled to Rs 100 crore.
Disaster relief has gone up from Rs 60 crore to Rs 64 crore, reflecting India's proactive role in global humanitarian responses.
Bigger outlay for diplomatic missions and citizen services
The Budget also provides for the expansion of India's diplomatic reach. The allocation for Indian embassies and missions abroad has been increased by 9 per cent to Rs 4,206.22 crore, following the establishment of ten new diplomatic posts in 2024-25.