In stark contrast with most of its peers in the emerging donor club, India has directed the vast majority of its rapidly growing foreign aid budget close to home over the past decade. By most accounts, Indian foreign aid’s sharp focus on South Asia has been designed to bolster New Delhi’s standing as a regional power.
Indian Prime Minister Narendra Modi’s first full-year budget, which was unveiled late last month, augurs little change in the direction of Indian foreign aid.
Devex analysis reveals that the budget sets aside 84 percent of the $1.6 billion Indian foreign aid envelope in 2015-16 to South Asia, down slightly from 86 percent the year before. The top recipient of Indian aid, Bhutan will claim 63 percent of Indian aid in 2015-16, which is unchanged from the previous year.