New Delhi: In the Union Budget for 2026-27, Bhutan has been granted the highest development aid of ₹2,288 crore, followed by Nepal with ₹800 crore, and both the Maldives and Mauritius receiving ₹550 crore each.
The Ministry of External Affairs (MEA) has seen its budget increase to ₹22,118 crore, compared to the previous fiscal year's budget estimate of ₹20,516 crore and a revised estimate of ₹21,742 crore.
For the upcoming fiscal year, Bangladesh's allocation is set at ₹60 crore, a significant drop from the ₹120 crore allocated in 2025-26, with the revised estimate showing only ₹34.48 crore due to strained relations.
Notably, there is no funding for the Chabahar port project this year, a departure from previous budgets where ₹100 crore was allocated last year, increasing to ₹400 crore in the revised estimate.
The total overseas development partnership budget for 2025-26 is estimated at ₹6,997 crore, which constitutes over 31% of the MEA's total allocation.
Of this overseas development budget, ₹4,548 crore is specifically designated for immediate neighboring countries.
This funding is intended for a range of projects, from large-scale infrastructure initiatives like hydroelectric plants and power transmission lines to smaller community development efforts, as outlined by officials.
According to revised estimates for 2025-26, Bhutan received ₹1,950 crore.
Continuing its strong ties with Afghanistan, India has allocated ₹150 crore to the nation, up from ₹100 crore in the previous fiscal year.
Sri Lanka has been allocated ₹400 crore, while Myanmar will receive ₹300 crore.
For Latin American countries, the total assistance in the 2026-27 budget is set at ₹120 crore.
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