Afghanistan Times
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KABUL – In a major policy shift, the Indian government has announced a substantial increase in financial aid to Afghanistan for the year 2025-26. Afghanistan, under Taliban rule, will receive ₹100 crore in grants—double the ₹50 crore allocated in 2024-25. This is part of India’s broader strategy to enhance foreign aid, particularly to its South Asian neighbors and other strategic regions.
The increase in aid to Afghanistan comes as part of India’s Union Budget proposal, which also includes a significant rise in grants to the Maldives. The Maldives will see a 28% increase in its grant allocation, from ₹470 crore to ₹600 crore for 2025-26, following a visit from Prime Minister Mohamed Muizzu to India in October 2024.
However, not all countries will see a boost in financial assistance. India is set to reduce aid to some island nations in the Indian Ocean, including Mauritius and Seychelles, as part of an overall 37% cut in foreign aid compared to the previous year. Myanmar and Bhutan will also see reductions in grants, while neighboring countries such as Bangladesh, Nepal, and Sri Lanka will continue to receive similar levels of support.
India has also earmarked ₹100 crore for the Chabahar port in Iran and has increased aid to African and Eurasian nations, though support for Latin American countries has seen a decline.
