KATHMANDU, Feb 1: India’s grant for Nepal remains unchanged this fiscal year, following Finance Minister Nirmala Sitharaman’s presentation of India’s 2025/2026 budget in Parliament. The allocation stands at 700 crore INR under the Ministry of External Affairs. In the previous fiscal year, India had increased Nepal’s grant from 657.38 crore INR in 2023/2024 to 700 crore INR in 2024/2025. However, this time the allocation has been maintained at 700 crore INR.

Elsewhere, India has designated its highest grant of 2,150 crore INR to Bhutan, although Bhutan’s budget has been reduced this time. The grant budget for Afghanistan has doubled from 50 crore INR last fiscal year to 100 crore INR now. Budgets for Bangladesh and Sri Lanka remain steady at 120 crore INR and 300 crore INR respectively. Additionally, India has notably raised the grant for the Maldives from 470 crore INR previously to 600 crore INR, despite strained relations due to Chinese aid.

Conversely, Myanmar’s grant budget has been reduced from 400 crore INR to 350 crore INR, while Mongolia’s allocation continues at 5 crore INR. The measured adjustments reflect India’s strategic approach towards regional partnerships. Officials emphasise that these allocations underline India’s commitment to regional stability and collaboration.