The Ministry of External Affairs (MEA) has allocated a total of Rs 22,154 crore in the interim budget for the fiscal year 2024-25, marking a notable increase from the previous year's outlay of Rs 18,050 crore.
Finance Minister Nirmala Sitharaman, during her budget speech, revealed that Bhutan, Nepal, Maldives, and Mauritius are set to receive the greater part of the MEA's development assistance.
Bhutan, underlining India's 'Neighbourhood First' policy, secured the largest share with an allocation of Rs 2,068 crore, showcasing the nation's continued commitment to its Himalayan neighbour. This allocation slightly decreased from the 2023-24 outlay of Rs 2,400 crore.
Meanwhile, the budgetary aid for Chabahar Port remained steady at Rs 100 crore, highlighting India's emphasis on connectivity projects with Iran.
Continuing its special relationship with Afghanistan, India allocated Rs 200 crore as budgetary aid for the war-torn nation.
Nepal is set to receive Rs 700 crore, while Bangladesh and Sri Lanka are earmarked for Rs 120 crore and Rs 75 crore, respectively, in development aid.
The Maldives, however, witnessed a reduction in aid, with the allocation set at Rs 600 crore compared to the previous year's Rs 770 crore. The allocation for Myanmar stands at Rs 250 crore, and Mauritius is earmarked to receive Rs 370 crore.
Additionally, Rs 200 crore has been allocated for African countries, and an outlay of Rs 282 crore is designated for "international cooperation," a slight decrease from the previous year's allocation of Rs 497 crore.
This year’s budget emphasised the strategic importance of the recently announced India-Middle East-Europe Economic Corridor (IMEC).
Finance Minister Sitharaman described IMEC as a "strategic and economic game-changer for India and others," positioning it as an initiative to counter China's Belt and Road Initiative.
Sitharaman quoted the Prime Minister, stating that the corridor "will become the basis of world trade for hundreds of years to come."
The total development assistance to various countries and regions, including Latin America and Eurasia, is pegged at Rs 4,883 crore.
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