India’s Development Aid Allocation to Other Countries in Union Budget 2026-27
Focus on Neighbourhood First Policy and Strategic Assistance
In the Union Budget 2026-27, the Ministry of External Affairs (MEA) — which handles India’s foreign diplomacy and overseas development cooperation — has been allocated a total net budget of ₹22,118.97 crore under Demand No. 29. Of this, a significant portion is earmarked for bilateral development aid and assistance to countries across regions.
Key Figures from MEA Budget (Demand No. 29)
According to official figures from the Government of India’s Notes on Demands for Grants (sbe29.pdf), the Budget 2026-27 includes the following allocations under “Aid to Countries”:
| Country/Region | Aid Allocation (₹ crore) |
|---|---|
| Bhutan | 2,288.56 |
| Afghanistan | 150.00 |
| Bangladesh | 60.00 |
| Nepal | 800.00 |
| Sri Lanka | 400.00 |
| Maldives | 550.00 |
| Myanmar | 300.00 |
| Mongolia | 25.00 |
| African Countries (grouped) | 225.00 |
| Eurasian Countries | 38.00 |
| Latin American Countries | 120.00 |
| Other Developing Countries | 80.00 |
| Disaster Relief | 80.00 |
| Mauritius | 550.00 |
| Seychelles | 19.00 |
✔ Total Aid to Countries: ₹5,685.56 crore in the Budget 2026-27.
✔ Bhutan receives the largest share of aid — ₹2,288.56 crore, significantly higher than other neighbours.
✔ Aid to Bangladesh has been lowered to ₹60 crore compared with previous years.
✔ Chabahar Port allocation, which appeared in earlier budgets, is not present in this year’s list.
Interpretation of the Aid Figures
Bhutan: Major Beneficiary
Bhutan remains the top beneficiary of India’s development assistance, receiving over ₹2,288 crore under the 2026-27 Budget. This reflects India’s continued emphasis on economic cooperation, infrastructure development and strategic partnership with Bhutan, consistent with the Neighbourhood First policy.
Other Neighbours and Regions
- Nepal and the Maldives continue to be major recipients, with allocations of ₹800 crore and ₹550 crore respectively.
- Sri Lanka and Myanmar also figure prominently, while Bangladesh’s allocation has been reduced (₹60 crore), likely reflecting shifting diplomatic and strategic priorities.
- India’s aid also covers African, Latin American and Eurasian countries in grouped allocations, and includes provisions for disaster relief assistance.
Why These Allocations Matter
India’s overseas aid is not only economic support but also a strategic tool that enhances bilateral ties, supports regional stability, and expands India’s global influence. The significant assistance to Bhutan, Nepal and Maldives underscores these partnerships, especially in areas such as energy, infrastructure, community development and humanitarian response.
Source Document
The aid figures above are drawn directly from the official Government of India budget document:
➡️ Government of India — Ministry of External Affairs Demand No. 29 (Notes on Demands for Grants 2026-27):
https://www.indiabudget.gov.in/doc/eb/sbe29.pdf
This PDF contains the full table showing the budget for MEA including detailed aid allocations under the Aid to Countries head for BE 2026-27. The table from this document is the basis for the allocations shown above.
