On Tuesday, Finance Minister Nirmala Sitharaman presented the first budget of Indian Prime Minister Narendra Modi’s third term, covering the fiscal year 2024/25.
In this budget, India has allocated a grant of INR 7 billion (about NPR 11.20 billion) to Nepal. This is the same amount that was announced in February. In the previous fiscal year 2023/24, India initially allocated INR 5.50 billion to Nepal but later increased it to INR 6.50 billion. In the fiscal year 2022/23, India provided INR 4.34 billion to Nepal.
Traditionally, India announces its budget in February, but this full budget was presented on Tuesday after the new government was established.
Bhutan remains the largest recipient of India’s foreign aid. For the fiscal year 2024/25, Bhutan will receive INR 10.78 billion in grants and INR 9.89 billion in loans, totaling INR 20.68 billion.
India regularly includes grants to neighboring countries in its budget, with funding for Nepal, Bhutan, Bangladesh, Sri Lanka, Afghanistan, the Maldives, and Mongolia. Bhutan and Nepal are the top recipients of these grants.