Budget 2024: Govt allocates Rs 5,700 crore for loans to foreign govts. Here are the top 10 overseas borrowers

The Indian government has allocated an estimated amount of Rs 5,667.56 crore as grants and loans to foreign governments for the fiscal year 2024-25. According to the Union Budget documents released after the presentation of the interim budget by Finance Minister Nirmala Sitharaman, Bhutan has emerged as the primary recipient of Indian government grants and loans. In the fiscal year 2023-24, the government provided a loan of Rs 1,614.36 crore, surpassing the budget estimates for grants and loans in 2024-25.

Top 10 receiver of grants from India
1. Bhutan: Rs 2398.97 crore
2. Maldives: Rs 770.90 crore
3. Nepal: Rs 650 crore

4. Myanmar: Rs 370 crore
5. Mauritius: Rs 330 crore
6. Afghanistan: Rs 220 crore
7. Bangladesh: Rs 130 crore
8. Sri Lanka: Rs 60 crore
9. Seychelles: Rs 9.91 crore
10. Mongolia: Rs 5 crore

Finance Minister today presented the Interim Budget in Parliament. It is important to note that this is a vote-on-account, and the complete budget is expected to be announced in July after the new government assumes office. During her sixth consecutive budget speech, Finance Minister Nirmala Sitharaman highlighted the emergence of a new world order amidst the challenges posed by the Covid-19 pandemic, conflicts, and geopolitical shifts.

She stated that globalization is being redefined with reshoring and friend-shoring, disruption and fragmentation of supply chains, and competition for critical minerals and technologies. Sitharaman also showcased India's achievements, including assuming the G20 Presidency during a challenging period for the global economy. She emphasized the prevalent global issues such as high inflation, interest rates, low growth, soaring public debt, sluggish trade growth, and climate challenges. Despite these challenges, India has successfully navigated the crisis, providing leadership and building consensus on global problem-solving.