Indian aid to SAARC nations has fallen due to being financially richer with respect to other SAARC countries, India gives financial assistance to the remaining countries except for Pakistan for projects construction. But in the past five years, India’s grant assistance to these neighbouring countries declined considerably from Rs 5928.6 crore for 2013-14 to Rs 3483.6 crore for 2017-18. The slogan “neighbourhood first” given by NDA government in 2014 and at that time the drop was most steep.

This drop in Indian Aid to SAARC nations is with every country except the Maldives. The financial assistance here has been increasing year on year since 2013, despite a dip in bilateral ties. This is the only country where Modi has not yet visited. The grant assistance here increased by ten times: from Rs 9.67 cr in 2013-14 to Rs 109.24 Cr. India is still completing three main projects in the Maldives. It is a police academy, a coastal radar project, the refit of MNDF ship Huravee. A project of building a new defence ministry is pending.

REASONS FOR DIP IN FINANCIAL ASSISTANCE

In Bangladesh, the main grant for land acquisition for Akhaura-Agartala rail “last link” project has completed. That’s why the financial aid to Bangladesh dropped by largest margin by 87%.

In Afganistan, India has shifted to work on small development project rather than ambitious highways, dams, the big building project that started in 2008-09. The major project like Salma Dam and Afganistan parliament was done and handed over. So there is naturally decline in financial assistance.

In Bhutan, the assistance required for major hydroelectric power plants like Punatsangnehu 1 and 2 and Mangdechuhas has disbursed 75-90 %.

In Srilanka, the delay in the land acquisition of 15000 homes to be built by India in plantation areas is the reason for the decline. But work on  45000 homes in the north and east of island has completed.