2 minEconomic Concept
Economic Concept

Development Cooperation/Assistance

What is Development Cooperation/Assistance?

Development Cooperation (also known as Development Assistance or Foreign Aid) refers to the financial, technical, or in-kind support provided by one country (donor) to another (recipient), primarily for economic development, poverty reduction, and humanitarian purposes. It is a key instrument of foreign policy and economic diplomacy, fostering goodwill and strategic influence.

Historical Background

Post-World War II, development assistance emerged with initiatives like the Marshall Plan. Over time, it evolved from traditional donor-recipient models to more partnership-based approaches, especially with the rise of South-South Cooperation. India, historically a recipient, has emerged as a significant development partner, particularly since the 1990s.

Key Points

9 points
  • 1.

    Forms of Assistance: Includes grants (non-repayable funds), concessional loans (loans with favorable terms), Lines of Credit (LoCs), technical assistance, capacity building, and humanitarian aid.

  • 2.

    Sectors of Focus: Infrastructure (transport, energy, digital), health, education, agriculture, water resources, skill development, and small & medium enterprises.

  • 3.

    Objectives: Fostering goodwill, enhancing strategic influence, promoting economic ties, supporting regional stability, addressing humanitarian crises, and achieving Sustainable Development Goals (SDGs).

  • 4.

    India's Approach: Demand-driven, non-prescriptive, and based on the priorities of partner countries. Emphasizes capacity building, technology transfer, and sustainable development.

  • 5.

    Implementing Agency: India's Development Partnership Administration (DPA) under the Ministry of External Affairs (MEA) manages most of its development cooperation initiatives.

  • 6.

    South-South Cooperation: India is a strong proponent, sharing its development experience and expertise with other developing countries.

  • 7.

    Multilateral Engagement: India also contributes to multilateral development funds and programs (e.g., UN Development Programme, Global Fund).

  • 8.

    Disaster Relief: Providing immediate assistance during natural calamities (e.g., 'Operation Dost' in Turkey-Syria, 'Sagar Mission' in Indian Ocean Region).

  • 9.

    Flagship Initiatives: ITEC (Indian Technical and Economic Cooperation) Programme for capacity building and training in various fields.

Visual Insights

India's Development Cooperation: Principles, Forms & Impact

This mind map illustrates India's unique approach to development cooperation, highlighting its guiding principles, diverse forms of assistance, key sectors, and the broader objectives it serves in India's foreign policy.

India's Development Cooperation

  • Guiding Principles
  • Forms of Assistance
  • Objectives & Impact
  • Key Sectors of Focus

India's Development Assistance Snapshot (2024-25)

This dashboard provides key statistics on India's development cooperation efforts, reflecting its commitment as a reliable partner in the global South.

Total LoCs Extended (Cumulative)
Over $35 Billion+$5 Billion (since 2020)

India has extended Lines of Credit to 64 countries globally, primarily for infrastructure, agriculture, and capacity building projects, demonstrating its growing role as a development partner.

ITEC Beneficiaries (Annual)
Approx. 12,000Stable

The Indian Technical and Economic Cooperation (ITEC) Programme provides training and capacity building to professionals from over 160 developing countries, fostering human resource development and goodwill.

Aid to Sri Lanka (2022-23 Crisis)
Over $4 BillionN/A

This substantial assistance, including credit lines for essential imports and debt restructuring support, showcased India's commitment as a first responder and reliable partner during Sri Lanka's severe economic crisis.

Development Partnership Administration (DPA) Role
MEA's Nodal AgencyN/A

The DPA, under the Ministry of External Affairs, is responsible for planning, executing, and monitoring India's development cooperation projects, ensuring effective implementation.

Recent Developments

5 developments

India's substantial financial assistance and debt restructuring support to Sri Lanka during its 2022-23 economic crisis, demonstrating its commitment as a reliable partner.

Increased allocation for Lines of Credit to developing countries, particularly in Africa and the neighbourhood, for various infrastructure and development projects.

Focus on digital public infrastructure and renewable energy projects in partner countries, aligning with global sustainability goals.

Expansion of the ITEC Programme and other capacity-building initiatives to a wider range of countries and sectors.

India's role in providing vaccines and medical supplies during the COVID-19 pandemic under 'Vaccine Maitri', showcasing its humanitarian aspect of development cooperation.

Source Topic

India to Boost Sri Lanka's Infrastructure: Rail Tracks and Bridges Project

International Relations

UPSC Relevance

Highly relevant for UPSC GS Paper 2 (International Relations, India's foreign policy, role of India in the world) and GS Paper 3 (Economic Development, Indian Economy). Questions often cover India's role as a donor, its approach to aid, the strategic implications, and its contribution to global development. Important for both Prelims and Mains.

India's Development Cooperation: Principles, Forms & Impact

This mind map illustrates India's unique approach to development cooperation, highlighting its guiding principles, diverse forms of assistance, key sectors, and the broader objectives it serves in India's foreign policy.

India's Development Cooperation

Demand-Driven & Non-Prescriptive

Partnership-Based & Consultative

Emphasis on Capacity Building

Lines of Credit (LoCs)

Grants & Technical Assistance

Humanitarian Aid & Disaster Relief (HADR)

Fostering Goodwill & Strategic Influence

Promoting Economic Ties & Trade

Supporting Regional Stability & SDGs

Infrastructure (Transport, Energy, Digital)

Social (Health, Education, Skill Dev.)

Agriculture & Water Resources

Connections
Guiding PrinciplesForms of Assistance
Forms of AssistanceObjectives & Impact
Key Sectors of FocusForms of Assistance

India's Development Assistance Snapshot (2024-25)

This dashboard provides key statistics on India's development cooperation efforts, reflecting its commitment as a reliable partner in the global South.

Total LoCs Extended (Cumulative)+$5 Billion (since 2020)
Over $35 Billion

India has extended Lines of Credit to 64 countries globally, primarily for infrastructure, agriculture, and capacity building projects, demonstrating its growing role as a development partner.

Data: 2025
ITEC Beneficiaries (Annual)Stable
Approx. 12,000

The Indian Technical and Economic Cooperation (ITEC) Programme provides training and capacity building to professionals from over 160 developing countries, fostering human resource development and goodwill.

Data: 2024
Aid to Sri Lanka (2022-23 Crisis)N/A
Over $4 Billion

This substantial assistance, including credit lines for essential imports and debt restructuring support, showcased India's commitment as a first responder and reliable partner during Sri Lanka's severe economic crisis.

Data: 2023
Development Partnership Administration (DPA) RoleN/A
MEA's Nodal Agency

The DPA, under the Ministry of External Affairs, is responsible for planning, executing, and monitoring India's development cooperation projects, ensuring effective implementation.

Data: 2025