External affairs: Despite unease in ties, India to fund development works in Bangladesh

Despite the unease in relations with Bangladesh, India will continue to fund development projects in that country. Separately, it will increase budgetary allocation to Maldives after bilateral relations showed a marked improvement in the past six months.

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The government has allocated the Ministry of External Affairs a budget of Rs 20,516 crore for the next fiscal starting April 1. Of this, the ‘overseas development partnership’ will get a sum of Rs 6,750 crore – that is 33 per cent of the overall MEA budget. Last year’s allocation for this head was Rs 5,667 crore.

The allocation is in line with foreign policy objectives and expansive development partnership footprint. Within this ‘development partnership’, priority is for the ‘neighbourhood first’ policy and 64 per cent of schemes worth Rs 4,320 crore are earmarked for immediate neighbours -– Bangladesh, Bhutan, Nepal, Sri Lanka, Maldives, Mauritius, Myanmar and Afghanistan.

This will include initiatives ranging from large infrastructure projects like hydroelectric plants, power transmission lines, housing, roads, bridges, integrated check-posts to small-scale grassroots-level community development projects as well as training and capacity building programmes.

The allocation for Bangladesh shall remain at Rs 120 crore -– the same as last year. Schemes include establishment of computer and language labs in 509 schools; supply of equipment, courseware and reference books and training for Bangladesh digital service and employment training and fine art faculty building at Jahagirnagar University.

India and Bangladesh are presently locked in a war of words over India erecting a fence along the border in its own territory. Dhaka has sought extradition of deposed Prime Minister Sheikh Hasina, who was ousted in August following continued street protests. New Delhi has not responded, so far.

For Maldives, the allocation has been increased to Rs 600 crore for the next fiscal. In the present fiscal, the programmes in Maldives — after Mohamed Muizzu rode to power on an anti-India plank — were scaled back and allocation was Rs 400 crore, down from Rs 800 crore in the previous fiscal.

In Myanmar, India will continue with the Rakhine State Development Programme (RSDP) that is to build infrastructure, including housing, education, health and agriculture. Two weeks ago, Indian Ambassador to Myanmar Abhay Thakur had visited Sittwe port in Rakhine to review ongoing operations. Sittwe port, inaugurated in May 2023, has since handled over 150 vessels. However, progress on the road component has been hindered by security challenges in Myanmar.

The allocation for Bhutan went up from Rs 2,068 crore in 2024-25 to Rs 2,150 crore in 2025-26.

The MEA has operationalised 10 new missions and posts abroad during this fiscal and the relevant budget has been increased to cater to it.