India’s Global Lending: Which Countries India Lends To; Which One Receives The Most Assistance

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.