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.

Bhutan Tops The List Of Indian Aid Recipients

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.

Breakdown Of Indian Assistance By Country

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

India’s Own Foreign Debt

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.

New Delhi: Often hailed as an emerging global power, India’s rise is underpinned by a complex web of loans, investments and international financial cooperation. The question is whether India is a heavy borrower or a responsible debt manager. Which countries and institutions lend the most to India, and how has the country simultaneously extended assistance to dozens of other nations?

The data behind these questions tells a nuanced story.

India’s Growing Foreign Debt

Influenced by domestic needs and global economic conditions, India’s foreign debt has grown over time. By the end of March 2020, India’s total external debt reached around $558.5 billion. This includes commercial borrowing, Non-Resident Indian (NRI) deposits and loans from multilateral institutions.

Raising capital from global markets has been a core part of India’s economic strategy, helping finance infrastructure projects, industrial growth and developmental initiatives.

Who Lends The Most To India?

India’s foreign debt is not concentrated with a single country. A large portion comes from international markets, foreign banks and institutional investors.

Multilateral institutions such as the World Bank and the Asian Development Bank have also been key lenders. During crises like the COVID-19 pandemic, loans from these institutions were crucial in supporting MSMEs, strengthening healthcare systems and bolstering education. Such borrowing has been an important tool for crisis management.

The Role Of NRI Deposits, Commercial Loans

NRI deposits play a vital role in India’s external debt system. Capital deposited by Indians living abroad provides India with a stable and relatively safe source of funding.

Similarly, commercial borrowing allows Indian companies to raise capital from global markets at competitive rates, supporting production, exports and employment.

However, such loans carry risks, including interest rate fluctuations and currency exchange volatility.

Borrower And Lender – India’s Dual Role

Despite being a borrower, India is also a major contributor to global development. Today, the country provides economic assistance to more than 65 countries through lines of credit, grants, technical cooperation and humanitarian aid.

Its partnerships are especially strong with neighbouring countries and African nations, enhancing India’s soft power and establishing it as a responsible global partner.

Is Foreign Debt A Threat?

Economists argue that foreign debt is not inherently risky as long as it is used productively and repayment capacity is maintained. India’s debt-to-GDP ratio has stayed manageable. A strong foreign exchange reserve and a growing economy give India the ability to service its obligations. The real challenge lies in ensuring that borrowed funds continue to drive development and generate employment.

The civil aviation ministry has operationalised a round-the-clock Passenger Assistance Control Room (PACR) to address air travellers’ grievances more promptly, amid recent flight disruptions caused by operational issues and weather-related delays, PTI reported. The control room, which became functional on December 10, brings together officials from the ministry, the Directorate General of Civil Aviation (DGCA), airlines and the Airports Authority of India (AAI) to monitor flight operations, attend to passenger complaints and coordinate real-time assistance. The PACR was set up in the aftermath of large-scale operational disruptions faced by IndiGo earlier this month and continuing challenges such as fog-related delays at several airports. Civil Aviation Secretary Samir Kumar Sinha said the initiative has led to a marked improvement in grievance redressal and has received a positive response from passengers and other stakeholders. “Over 13,000 passenger grievances, received through AirSewa, social media and call channels, have been resolved, with cases expedited and prioritised through close monitoring at the Passenger Assistance Control Room (PACR),” Sinha said in a statement. According to the ministry, grievances raised across multiple platforms are now being channelled through the PACR in New Delhi, enabling quicker resolution through close coordination with airline representatives. Explaining the rationale for the initiative, Sinha said persistent issues such as frequent flight delays, inadequate or delayed refunds, long queues, poor passenger facilities at airports and incidents of lost baggage had continued to affect passenger experience across the aviation ecosystem. “These concerns highlighted the need for a structured, systematic and coordinated response rather than ad-hoc interventions,” he said. During a visit to the control room, officials and airline representatives said complaints handled at the centre range from flight cancellations and delays to lost baggage and onboard service issues. IndiGo’s Director of Customer Experience Pratik Arjun Sen said the airline receives a mixed set of passenger queries at the PACR and efforts are made to resolve grievances at the earliest. Since the disruptions earlier this month, Sen said IndiGo’s customer experience team has been working to address issues such as ticket refunds, with noticeable improvement. Ajeet Tiwari, Assistant Manager of Operations at SpiceJet, said flight delays are among the most common grievances flagged by passengers, adding that workflow at the control room has been smooth. Lisa Agarwal from Air India Express’s Customer Happiness Team said complaints often relate to lost or damaged baggage and meals not being served onboard, with most issues targeted for resolution within 72 hours. Akasa Air’s Senior Customer Service Agent Shahbaj Alam said the airline receives around 15–16 passenger queries daily at the centre, largely related to service issues, flight cancellations and refunds. Ministry official Ravneet Kaur said enquiries primarily concern ticket refunds and baggage-related issues, and are being addressed promptly through the PACR, which operates on a 24×7 basis.