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Which Countries India Lends To; Which One Receives The Most Money
India’s Global Lending: Which Countries India Lends To; Which One Receives The Most Assistance
A look at India's overseas financial support, where it is directed and how New Delhi balances global assistance with its own economic priorities.
India's Global Lending: India has evolved from being primarily a recipient of foreign aid to a provider of economic support and loans to several countries across Asia, Africa and Latin America. Its financial assistance has become an important instrument of foreign policy, reflecting India's growing role as a responsible regional and global partner.
Recent budget provides a clear picture of which countries benefit the most from Indian aid and how India balances lending with managing its own foreign debt.
According to the Union Budget 2024-25, the Ministry of External Affairs has been allocated Rs 22,155 crore. This is an increase over the budget estimate of Rs 18,050 crore for 2023-24, though it falls short of the revised estimate of Rs 29,121 crore. The allocation for foreign aid in 2024-25 is projected at Rs 5,667.56 crore.
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Budget data shows that Bhutan receives the largest share of India's financial support. In 2024-25, the country is expected to receive around Rs 2,068.56 crore, slightly lower than the revised figure of Rs 2,398.97 crore in 2023-24.
Following Bhutan, Nepal, the Maldives and Mauritius rank among the top recipients of Indian assistance.
Bhutan – Rs 2,068.56 crore
Nepal – Rs 700 crore
Maldives – Rs 400 crore
Mauritius – Rs 370 crore
Myanmar – Rs 250 crore
Sri Lanka – Rs 245 crore
Afghanistan – Rs 200 crore
Selected African countries – Rs 200 crore
Bangladesh – Rs 120 crore
Seychelles – Rs 40 crore
Selected Latin American countries – Rs 30 crore
While India provides loans to various countries, it also manages its own foreign debt. By the end of March 2020, the country's total external debt had reached approximately $558.5 billion, comprising commercial borrowings and NRI deposits as key components.
During the COVID-19 crisis, India also borrowed from institutions such as the World Bank and the Asian Development Bank to support sectors like MSMEs, healthcare and education.
Today, India extends financial assistance to more than 65 countries in various forms, including lines of credit, grants, technical cooperation and humanitarian aid. It reinforces its position as a responsible and influential player on the global stage.
Source: ZeeNews
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