Budget outlines India's growing strategic reach in region

NEW DELHI: The Budget outlines India’s growing strategic reach. Specific allocations for assistance to neighbouring countries have been maintained at almost last year’s levels while a special focus has been illustrated for countries lying east of India.

Ajay Banerjee

Tribune News Service

New Delhi, February 28

The Budget outlines India’s growing strategic reach. Specific allocations for assistance to neighbouring countries have been maintained at almost last year’s levels while a special focus has been illustrated for countries lying east of India.

The Foreign Ministry has seen a hike of 19 per cent in its fund allocations in the Union Budget 2015-16 as the main thrust remained towards various development assistance projects implemented by India in neighbouring countries including Bhutan and Afghanistan.

While Rs 12,620 crore was given by Finance Minister Arun Jaitley in Revised Estimates 2014-15, the allocation has been raised to Rs 14,966 crore for 2015-16 for the ministry, which is headed by Sushma Swaraj.

The major thrust of the ministry's budgetary allocation continues to be towards technical and economic cooperation under which various development assistance projects are being implemented in other countries. As much as Rs 9,107 crore have been allotted this year under this head as compared to the Rs 7,234.26 crore last fiscal.

The allocations under various heads include aid to Bhutan Rs 6,160 crore, Afghanistan Rs 676 crore, Sri Lanka Rs 500 crore, Maldives Rs 193 crore, Nepal Rs 420 crore and Bangladesh Rs 250 crore.

As much as 61 per cent of the ministry's budget is allocated towards technical and economic cooperation with other countries.

The notable feature of Jaitley’s speech was the ‘Act East’ policy of the Government of India which endeavours to cultivate extensive economic and strategic relations in South-East Asia.

He said in order to catalyse investments from the Indian private sector in this region, a Project Development Company will, through separate Special Purpose Vehicles (SPVs), set up manufacturing hubs in Cambodia, Myanmar, Laos and Vietnam.

Vietnam is locked in dispute with China in the hydrocarbon rich South China Sea while all of them are members of the 10-nation ASEAN grouping with which India has a trade target of $250 billion over the next five years.