Bhutan Receives Largest Share of Indian Development Aid Among Neighbors
Bhutan gets largest development aid share; Bangladesh sees allocation halved.
Photo by Rohan Reddy
Key Facts
Bhutan: Rs 2,288 crore aid
Nepal: Rs 800 crore aid
Bangladesh: Rs 60 crore aid
MEA allocation: Rs 22,118 crore
UPSC Exam Angles
GS Paper II: International Relations, India and its neighborhood
Connects to India's foreign policy objectives and regional diplomacy
Potential question types: Statement-based, analytical questions on aid effectiveness
Visual Insights
Key Figures: Indian Development Aid (2026-27)
This dashboard highlights key statistics related to Indian development aid in the Union Budget 2026-27.
- Total MEA Allocation
- Rs 22,118 crore
- Total Overseas Development Partnership Portfolio
- Rs 6,997 crore
- Allocation for Immediate Neighbors
- Rs 4,548 crore
Total budget allocated to the Ministry of External Affairs, indicating the overall resources available for foreign policy initiatives.
Total amount allocated for overseas development projects, showcasing India's commitment to international cooperation.
Amount specifically earmarked for development projects in neighboring countries, emphasizing the 'Neighborhood First' policy.
More Information
Background
Latest Developments
Frequently Asked Questions
1. Which country received the largest share of Indian development aid in the Union Budget for 2026-27, and how much was it?
Bhutan received the largest share of Indian development aid, amounting to Rs 2,288 crore.
Exam Tip
Remember the top recipient and the amount for prelims. It shows India's priorities.
2. What is the total amount allocated to the Ministry of External Affairs (MEA) in the Union Budget for 2026-27?
The Ministry of External Affairs (MEA) was allocated a total of Rs 22,118 crore.
Exam Tip
Knowing the MEA allocation provides context to India's foreign policy spending.
3. How has the development aid allocation for Bangladesh changed, and what could be the reason for this?
The allocation for Bangladesh has been halved to Rs 60 crore. While the exact reason isn't specified, it could be due to various factors like project completion or changing priorities.
Exam Tip
Consider geopolitical factors when analyzing aid allocation changes.
4. What is India's 'Neighborhood First Policy', and how does the development aid allocation reflect this policy?
India's 'Neighborhood First Policy' prioritizes strengthening relations with its immediate neighbors. The allocation of a significant portion of the overseas development partnership portfolio (Rs 4,548 crore) to immediate neighbors reflects this policy.
5. Why is the allocation of development aid to neighboring countries important for India?
Development aid to neighboring countries is a key component of India's foreign policy. It helps strengthen relationships, promote regional stability, and enhance India's influence in the region through infrastructure projects and community development.
6. What are some potential benefits and drawbacks of India providing development aid to Bhutan?
Benefits include strengthened bilateral relations, enhanced regional stability, and potential economic opportunities for Indian companies. A potential drawback could be the financial burden on the Indian economy, especially if aid is not utilized effectively.
7. How might the reduction in aid to Bangladesh affect India-Bangladesh relations?
A reduction in aid could potentially strain relations if not communicated and managed effectively. However, if Bangladesh's economy is improving and requires less aid, it might be seen as a sign of their progress. Continued cooperation on other fronts is crucial.
8. Why is the allocation of development aid to neighboring countries in the news recently?
The allocation of development aid to neighboring countries is in the news due to the release of the Union Budget for 2026-27, which outlines the specific amounts allocated to each country. Changes in these allocations, like the increase for Bhutan and the decrease for Bangladesh, often generate discussion.
9. What infrastructure projects are likely to be supported by the development aid?
The funds are expected to support infrastructure projects, including hydroelectric plants, power transmission lines, housing, roads, and bridges, as well as community development projects in neighboring countries.
10. What does the lack of allocation for the Chabahar Port project in the budget indicate?
The absence of allocation for the Chabahar Port project could indicate a shift in priorities, funding constraints, or a re-evaluation of the project's progress and feasibility. It might also suggest alternative funding mechanisms are being explored.
Practice Questions (MCQs)
1. Consider the following statements regarding India's development assistance to its neighboring countries: 1. Bhutan has been allocated the largest share of development aid in the Union Budget 2026-27. 2. The allocation for Bangladesh has been increased in the Union Budget 2026-27. 3. No allocation has been made for the Chabahar Port project in the Union Budget 2026-27. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.1 and 3 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is CORRECT: Bhutan has been allocated the largest share of development aid at Rs 2,288 crore in the Union Budget 2026-27. Statement 2 is INCORRECT: The allocation for Bangladesh has been halved to Rs 60 crore. Statement 3 is CORRECT: No allocation has been made for the Chabahar Port project in the Union Budget 2026-27.
2. Which of the following countries received the second highest allocation of development aid from India in the Union Budget 2026-27, as per the provided information?
- A.Maldives
- B.Nepal
- C.Mauritius
- D.Bangladesh
Show Answer
Answer: B
Nepal received Rs 800 crore, which is the second highest allocation after Bhutan's Rs 2,288 crore. The Maldives and Mauritius each received Rs 550 crore, while Bangladesh received Rs 60 crore.
3. The Indian Technical and Economic Cooperation (ITEC) Programme, a key component of India's development assistance, was established in which year?
- A.1954
- B.1964
- C.1974
- D.1984
Show Answer
Answer: B
The Indian Technical and Economic Cooperation (ITEC) Programme was established in 1964. It provides training and capacity building to professionals from developing countries.
Source Articles
Budget 2026-27: India cuts outlay for Iran’s Chabahar port to zero, halves Bangladesh aid amid strained ties
Budget 2026: At Rs 2,288 cr, Bhutan gets largest development aid share among neighbours | India News - The Indian Express
After 3 new rail lines, a high-speed train for north Bengal | Kolkata News - The Indian Express
India News: Latest India News, Today Breaking News Headlines from India | The Indian Express