Kathmandu – India has allocated ₹700 crore (INR) as a grant to Nepal in its budget for the fiscal year 2025/26. Presenting the annual budget, Indian Finance Minister Nirmala Sitharaman announced the grant, which remains unchanged from the previous year.

India has been consistently providing financial assistance to Nepal, with the allocation standing at approximately ₹11 billion (NPR). Despite an overall increase in India’s foreign aid budget in recent years, Nepal’s grant remains at the same level as last year.

Bhutan continues to be the largest recipient of India’s financial assistance. As per Sitharaman’s announcement, Bhutan will receive ₹2,150 crore in grants this year. However, this marks a decline from last year’s ₹2,543 crore allocation.

Meanwhile, India’s budget has increased aid to the Maldives, which will now receive ₹600 crore, up from ₹470 crore in the previous fiscal year. Afghanistan’s grant has also been doubled, with the country set to receive ₹100 crore, compared to ₹50 crore last year.

Additionally, India has allocated ₹300 crore to Sri Lanka and ₹400 crore to Myanmar as part of its foreign aid program.

Overall, India has earmarked ₹5,483 crore for grants to neighboring and friendly nations in the 2025/26 budget. This is a reduction from the ₹5,800 crore allocated in the previous fiscal year, according to Indian news agency NDTV.