Foreign_aid_to_India

Foreign aid to India

Foreign aid to India

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The Indian government used to receive foreign aid from various nations and international organisations.

Aid received

In 2010, British newspaper The Guardian reported the aid received by India to be less than 1% of its GDP and has declined to take foreign aid recently.[1]

The United States Agency for International Development (USAID) compiled and published a data in 2015 indicating that from the period 1946-2012, India has been the recipient of highest aid from United States. The amount of economic aid, adjusted to inflation then, was reported to be USD 65.1 billion.[2]

Refusal to take aid

In recent times, the Government of India has on various occasions refused to take foreign aid for management of natural disasters like 2004 Indian Ocean tsunami, 2013 Uttarakhand floods, 2014 Kashmir floods, and 2018 Kerala floods.[3] In year 2017, the Indian Government declared that India had been a net donor in 2015-16 and in the annual budget of year 2019-2020 ₹8,415 crore (USD 1.32 billion) were allocated (0.3% of the overall budget) for India's own foreign aid programme.

As donor

Main article: Indian foreign aid

India is not a member of Development Assistance Committee, which includes World's major donor countries. Despite that, India has recorded donations to various countries. India also provides non-monetary help in cases of natural disasters by means of sending supplies and manpower for rescue missions.[3] In 2017, General V. K. Singh, the then Minister of State for External Affairs informed that India had been a net donor in 2015-16 by donating ₹7,719.65 crore (US$970 million) as aid and receiving only ₹2,144.77 crore (US$270 million) from foreign countries and global banks.[4] India's major quantum of foreign aid is given to neighbouring countries. According to India's budget in 2021-22, its direct overseas aid stood at ₹18,154 crore (US$2.4 billion).

In the 2024 budget, the Indian government reduced its overall allocation for aid to foreign countries by 10%. For example, aid to the Maldives has been cut by 22% for the 2024-25 financial year. This reduction comes amid a diplomatic row between India and the Maldives, which has influenced the adjustments in aid allocations. Despite this, Maldives remains the third highest recipient of aid from India, reflecting the country's strategic importance to India. The budget also mentioned cuts in aid to Afghanistan, Bangladesh, Myanmar, and Latin American nations, while allocations for Sri Lanka, African countries, Mauritius, and the Seychelles have seen an increase.[5]

See also

References

  1. [1]
    Glennie, Jonathan (8 November 2010). "If India doesn't 'need' aid, why do foreign governments still give it?". The Guardian. Retrieved 14 May 2019.
  2. [2]
    Rajghatta, Chidanand (16 July 2015). "India top recipient of US economic aid". Times of India. Retrieved 15 May 2019.
  3. [3]
    Bagchi, Indrani (23 August 2018). "Why it's perfectly justified for India to refuse foreign aid for Kerala". Economic Times. Retrieved 14 May 2019.
  4. [4]
    Sharma, Ritu (22 March 2017). "Emerging power India gives more aid than it receives". Indian Express. Retrieved 14 May 2019.
  5. [5]
    "Budget 2024: India cuts aid to Maldives, grants to other foreign nations see a drop too". India Today. Retrieved 2024-02-15.
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