India Announces INR 7 Billion Grant to Nepal for FY 2024/25

In the current fiscal year (FY) 2024/25, India has announced a substantial grant of INR 7 billion to Nepal. This new grant amount represents an increase of more than INR 500 million from the previous fiscal year.

The announcement was made on Tuesday during the unveiling of the full budget for FY 2024/25 by the Indian government, following the formation of a new coalition government led by Prime Minister Narendra Modi.

In the last fiscal year, the Indian government initially committed to providing Nepal with a grant of INR 5.50 billion (Rs 8.80 billion), which was later revised to INR 6.50 billion (Rs 10.40 billion).

Indian Finance Minister Nirmala Sitharaman, while presenting the budget, stated that the Indian government will be providing Nepal with a grant of INR 7 billion (Rs 11.20 billion) for the current fiscal year.

Additionally, India will be providing Bhutan with INR 20.685 billion for the same period. The grant amount for the Maldives has been reduced to INR 4 billion for the next fiscal year, down from INR 6 billion previously. Myanmar will receive INR 2.50 billion, Sri Lanka INR 2.45 billion, Afghanistan INR 2 billion, and Bangladesh will receive INR 1.20 billion in grants from India.