India will be doubling the financial aid provided to Taliban-ruled Afghanistan for the year 2025-26, while it will be reducing aid to some of the island nations in the Indian Ocean including Mauritius and Seychelles.

In the Union Budget presented on Saturday, the Government of India has proposed to provide ₹6886 crore as grants and loans to foreign governments for the year 2025-26, which is 37 percent less compared to the Rs 11,035 crore promised for the current financial year. These grants and loans are provided by the Ministry of External Affairs and Ministry of Finance.

₹100 crore grant Afghanistan

Among the governments who will receive higher financial aid in the upcoming year include Afghanistan which will receive ₹100 crore as grants for the year 2025-26. This is double the ₹50 crore promised to the country for 2024-25. India will also be giving 28 per cent more grants to Maldives. Compared to the ₹470 crore of grants promised to Maldives in the ongoing financial year, it has proposed to provide ₹600 crore for the financial year 2026. The rise in aid comes after Maldives Prime Minister Mohamed Muizzu visited India and met his Indian counterpart in October 2024.

In stark contrast, the aid proposed for some of the other island nations in the Indian Ocean like Mauritius and Seychelles stands reduced. The proposed aid for Seychelles has been reduced by 48 per cent to ₹19 crore from the ₹37 crore in 2024-25. Similarly, Mauritius is expected to get ₹500 crore as grants during 2025-26. This is a 13 per cent reduction compared to the ₹576 crore promised during the current financial year.

Grants to some of immediate neighbours too have been reduced. During 2025-26, it has been proposed to provide ₹350 crore as grants to Myanmar. This is a 12.5 percent reduction compared to the ₹400 crore promised for the current financial year. Similarly, the overall financial support to Bhutan has also seen a 12 percent reduction. The grants provided to the Himalayan country have been increased to ₹1775 crore from ₹1673 crore (an increase of six percent) while the proposed loan amount has been reduced to Rs 375 crore from Rs 869 crore-- a reduction of 56 percent.

Aids to some of the other Asian neighbours is expected to remain unchanged. For instance India is expected to continue providing ₹120 crore grants to Bangladesh, ₹700 crore to Nepal and ₹300 crore to Sri Lanka. India is also expected to continue to provide ₹100 crore for the Chabahar port in Iran.

Meanwhile, aid promised to African and Eurasian countries has been increased, while that for Latin American nations has been reduced for the year 2025-26. African countries are due to get ₹225 crore as grants, an increase of 12.5 per cent, while grants to Eurasian countries are slated to go up 33 per cent to ₹40 crore. In comparison, the aid to Latin American countries is expected to decline to ₹60 crore from ₹90 crore.

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