In the Union Budget 2026–27, the Indian government has allocated ₹5,685.56 crore for financial assistance to foreign countries. The Ministry of External Affairs has been given a total budget of ₹22,118.97 crore, out of which this amount is set aside under the category of aid to other nations. According to budget documents, Bhutan has received the highest share at ₹2,288.56 crore, showing India’s continued focus on supporting its close neighbor. Nepal follows with an allocation of ₹800 crore.
Aid to Bangladesh has been cut by 50%, reduced from ₹120 crore last year to ₹60 crore this year, amid strained relations following reports of attacks on minorities there. In contrast, Sri Lanka’s assistance has increased from ₹300 crore to ₹400 crore. Myanmar has been allotted ₹300 crore, Maldives and Mauritius ₹550 crore each, and Latin American countries ₹120 crore. Aid to Afghanistan has been raised from ₹100 crore to ₹150 crore, while disaster relief funds for foreign countries remain unchanged at ₹80 crore. Notably, no funds have been allocated this year for Iran’s Chabahar Port project, which had received around ₹100 crore annually in previous budgets.
