Kathmandu: In a boost to bilateral relations, India has raised its financial aid to Nepal for the fiscal year 2024/25. The Indian government, led by Finance Minister Nirmala Sitharaman, announced an allocation of INR 7 billion (NPR 11.2 billion) for Nepal, marking a significant increase from the previous fiscal year’s INR 5.5 billion (NPR 8.8 billion).

This financial assistance comes as a continuation of India’s support to Nepal, as evidenced by the revised allocation of INR 6.5 billion (NPR 10.4 billion) for the last fiscal year, reflecting a considerable augmentation from the originally planned INR 6 billion (NPR 9.6 billion). Notably, Nepal had received INR 4.34 billion (NPR 6.94 billion) in aid from India during the fiscal year 2022/23.

India has been a major contributor to its neighboring countries, particularly Bhutan, which receives substantial grants and loans. For the fiscal year 2024/25, Bhutan is slated to receive INR 20 billion (NPR 32 billion), including a significant portion as a loan. This marks an increase from the previous year’s INR 24 billion (NPR 38.4 billion), which was later revised to INR 23.98 billion (NPR 38.37 billion), with a substantial portion converted into a loan. Meanwhile, India has allocated INR 6 billion (NPR 9.6 billion) to the Maldives, amidst ongoing disputes between the two countries. This represents a notable increase from the previous fiscal year and underscores India’s commitment to supporting its neighbors in the South Asian region.

In comparison, Nepal’s budget for the fiscal year 2023/24 was INR 4 billion (NPR 6.4 billion), later revised to INR 7.7 billion (NPR 12.32 billion), reflecting adjustments made in response to changing economic circumstances. India’s financial assistance extends beyond Nepal, Bhutan, and the Maldives, covering countries such as Afghanistan, Bangladesh, Sri Lanka, Mongolia, Mauritius, Myanmar, and others, reaffirming its regional commitment.