NEW DELHI – July 24, 2024 – The Indian government has announced a notable increase in budget allocations for development projects in Sri Lanka and Nepal, as part of its upcoming fiscal year budget. This adjustment highlights India’s commitment to supporting regional stability and fostering closer economic ties with its neighbors.
Sri Lanka will see its budget allocation rise to ₹245 crore for the fiscal year, up from ₹150 crore allocated previously. This increase is intended to support ongoing and new development initiatives in the country. India has already extended significant financial aid to Sri Lanka, including a $4 billion grant and line of credit amid the island nation’s economic crisis. The additional funds are expected to enhance infrastructure projects and strengthen bilateral cooperation.
Nepal will also benefit from a substantial increase in its development budget, with the allocation growing to ₹700 crore from last year’s revised figure of ₹650 crore and an initial allocation of ₹550 crore. This boost reflects India’s dedication to supporting Nepal’s growth and stability through various development programs.
India’s budget also includes increased support for other regional development projects. Seychelles will receive ₹40 crore this year, a substantial increase from ₹10 crore in the previous fiscal year. This rise indicates a strengthened engagement between India and the island nation. Allocations for Afghanistan and the Maldives will remain steady at ₹200 crore and ₹400 crore, respectively.
Conversely, Bhutan will experience a decrease in its budget allocation, with funding reduced by ₹332 crore to ₹2068.56 crore. Despite still receiving the largest share among neighboring countries, this reduction reflects adjustments in India’s regional financial strategy. Myanmar also faces a reduction in its budget, though specific figures have not been detailed.
Overall, these budgetary changes underscore India’s strategic approach to regional development, aiming to support economic growth, improve infrastructure, and enhance cooperation with its neighboring countries.
