Maldives, Afghanistan and Bhutan big gainers in India’s Union Budget 2025; Myanmar gets a cut

Union Budget 2025 has something for everyone. From the middle class to farmers, the budget fulfils the aspirations of GYAN (Gareeb, Yuva, Anndata and Nari Shakti), Finance Minister Nirmala Sitharaman said on Saturday during her speech in Lok Sabha.

While the budget has a lot in store for India’s development, countries like Maldives, Afghanistan and Myanmar have found a mention in it, signalling New Delhi’s commitment to strengthen bilateral ties with its Asian partners.

The budget has allocated a total of Rs 5,483 in funding to aid foreign governments in the financial year 2025-26. The amount is less than what was budgeted last year at Rs 5,806. These grants and loans are dispersed to the beneficiary countries through the Ministry of External Affairs and Ministry of Finance.

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Which country has received the highest increase in aid?

Maldives has got a substantial boost in funding compared to the previous year. This year’s budget has earmarked Rs 600 crore for the island nation. Last year, India allocated Rs 470 crore in aid to the country.

Maldives made a cut in the budget at a time when its relationship with New Delhi nosedived against the backdrop of President Mohamed Muizzu’s “India Out” campaign and his growing camaraderie with China.

In October last year, India signed a $400-million and a 30-billion rupee ($346 million) bilateral currency swap agreement with the Maldives and also agreed to initiate talks on a free trade agreement focusing on goods and services.

Among the other countries that have gained substantially from the budget are Afghanistan and Bhutan which will receive Rs 100 crore and Rs 2150 crore respectively. Meanwhile, Myanmar will get Rs 350 crore.

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What are some other countries that received Indian aid?

Afghanistan is among the governments set to receive increased financial aid in the coming year, with a grant of Rs 100 crore allocated for 2025-26—double the Rs 50 crore pledged for 2024-25.

In sharp contrast, financial aid for some island nations, including Mauritius and Seychelles, has been downsized. The proposed aid for Seychelles has been cut by 48 per cent to Rs 19 crore from Rs 37 crore in 2024-25.

Similarly, Mauritius is set to receive Rs 500 crore in grants for 2025-26, marking a 13 per cent decrease from the Rs 576 crore allocated for the current financial year.