The federal government on Sunday has allotted Rs 5,685.56 crore as grants-in-aid to international nations within the Union Finances 2026–27. Bhutan emerged as the biggest beneficiary, whereas no funds have been put aside for the strategically essential Chabahar Port challenge in Iran.The Ministry of Exterior Affairs (MEA) has been allotted a complete outlay of Rs 22,118 crore for 2026–27, up from the funds estimate of Rs 20,516 crore and the revised estimate of Rs 21,742 crore within the present fiscal.
Of the entire allocation, Rs 5,685.56 crore has been earmarked below the “Central Sector Schemes/Tasks – Help to International locations” head.Bhutan acquired the best allocation of Rs 2,288 crore as growth help, reaffirming India’s continued concentrate on its closest neighbour. Nepal adopted with an allocation of Rs 800 crore, whereas the Maldives and Mauritius had been allotted Rs 550 crore every. Help to Bangladesh has been pegged at Rs 60 crore for 2026–27. The allocation marks a pointy discount from the funds estimate of Rs 120 crore in 2025–26, although it’s larger than the revised estimate of Rs 34.48 crore for the present 12 months. The reduce comes amid strained bilateral ties following political unrest in Bangladesh, together with assaults on minorities and protests focusing on Indian diplomatic pursuits.The reduce comes amid strained bilateral ties following political unrest in Bangladesh, together with assaults on minorities and protests focusing on Indian diplomatic pursuits.In a notable departure from latest years, no allocation has been made for the Chabahar Port challenge in Iran. Within the 2025–26 Finances, Rs 100 crore had been earmarked for the challenge, which was later elevated to Rs 400 crore within the revised estimate. The transfer comes towards the backdrop of renewed US sanctions on Iran and uncertainty over the continuation of Washington’s waiver for India’s involvement within the challenge, which is ready to run out on April 26.The Chabahar Port, collectively developed by India and Iran, is considered as a crucial gateway for commerce and connectivity to Afghanistan, Central Asia and Russia, and a key element of the Worldwide North-South Transport Hall (INSTC).Former finance minister P Chidambaram criticising the Centre for making no allocation for the Chabahar port within the Union Finances, alleged that the federal government was “succumbing to any person’s stress.” The remarks had been made by Congress chief whereas addressing a press convention. The entire abroad growth partnership portfolio for 2025–26 has been pegged at Rs 6,997 crore, accounting for somewhat over 31 per cent of the MEA’s general allocation. In line with officers, the funds will likely be used for a spread of initiatives, from giant infrastructure tasks similar to hydroelectric crops, energy transmission strains, housing, roads and bridges to grassroots-level group growth programmes.Sri Lanka has been allotted Rs 400 crore within the 2026–27 Finances, whereas Myanmar acquired Rs 300 crore. Help to Afghanistan was raised to Rs 150 crore from Rs 100 crore within the present fiscal, persevering with India’s growth engagement with the nation. Help to African nations remained unchanged at Rs 225 crore, whereas allocations for Latin American nations have been pegged at Rs 120 crore. Catastrophe aid help to international nations stood at Rs 80 crore.
