In Budget 2026, the total overseas development partnership portfolio for FY26-27 has been pegged at Rs 6,997 crore, which is slightly over 31 per cent of the MEA’s allocation. The Ministry of External Affairs was allocated a total of Rs 22,118 crore, against the current fiscal year’s budget estimate of Rs 20,516 crore and the revised estimate of Rs 21,742 crore.
Interestingly, out of the total allocation under the overseas development partnership portfolio, Rs 4,548 crore has been earmarked for immediate neighbours.
Bhutan and Nepal get highest share
Bhutan was allocated the largest share of Rs 2,288 crore as development aid in the Union Budget, followed by Rs 800 crore to Nepal and Rs 550 crore each to the Maldives and Mauritius.
The amount is expected to be spent on implementing a variety of initiatives, ranging from large infrastructure projects such as hydroelectric plants, power transmission lines, housing, roads, and bridges to small-scale grassroots-level community development projects, according to officials.
For the next fiscal, the allocation for Bangladesh has been pegged at Rs 60 crore. While the budget allocation to Bangladesh for 2025-26 was Rs 120 crore, the revised estimate put the amount at Rs 34.48 crore as ties between the two sides remained frosty.
In continuation with India’s special relationship with the people of Afghanistan, an allocation of Rs 150 crore has been made to that country. The allocation to Afghanistan for 2025-26 was Rs 100 crore.
While Sri Lanka has been allocated Rs 400 crore, Rs 300 crore has been set aside for Myanmar.
The total assistance to Latin American countries in the 2026-27 budget has been pegged at Rs 120 crore.
No allocation for Chabahar port
In a departure from the last few years, no allocation has been made for the Chabahar port project. In the budget last year, Rs 100 crore was set aside for the Chabahar port project, which was increased to Rs 400 crore in the revised estimate.