The Union Budget for the fiscal year 2025-26 places a strong emphasis on India's Neighbourhood First policy, showcasing a commitment to enhancing relationships with neighboring countries through substantial external aid. Among the recipients, Bhutan stands out as the nation receiving the highest share of this budget allocation.
The total external aid allocated in the Union Budget 2025-26 amounts to ₹20,516.61 crore, reflecting India's strategic intent to bolster partnerships with its neighbors.
Bhutan is set to receive ₹2,150 crore, which will fund critical initiatives such as hydropower development, infrastructure projects, and grassroots programs. This allocation aligns with India’s ongoing support of Bhutan's Five-Year Plans, which have seen a significant increase from ₹50,000 crore to ₹100,000 crore.
In response to economic challenges, India has raised its aid for the Maldives to ₹600 crore for 2025-26. This funding aims to promote defense cooperation and strengthen strategic ties in the Indian Ocean region.
The budget also highlights support for various other countries:
The budget allocates ₹100 crore for the Chabahar Port, recognizing its significance as a vital trade hub that connects India to Central Asia through the International North-South Trade Corridor. India’s assistance also extends to supporting port operations and infrastructure development in Iran.
Development schemes make up ₹4,320 crore of the budget, focusing on initiatives that enhance India's global partnerships. Some key areas of emphasis include:
“The strength of a nation lies not just in its borders but in the friendships it nurtures beyond them.”
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