Foreign aid to India

The Indian government used to receive foreign aid from various nations and international organisations.

Aid received
In 2010, British newspaper The Guardian reported the aid received by India to be less than 1% of its GDP and has declined to take foreign aid recently.

The United States Agency for International Development (USAID) compiled and published a data in 2015 indicating that from the period 1946-2012, India has been the recipient of highest aid from United States. The amount of economic aid, adjusted to inflation then, was reported to be USD 65.1 billion.

Refusal to take aid
In recent times, the Government of India has on various occasions refused to take foreign aid for management of natural disasters like 2004 Indian Ocean tsunami, 2013 Uttarakhand floods, 2014 Kashmir floods, and 2018 Kerala floods. In year 2017, the Indian Government declared that India had been a net donor in 2015-16 and in the annual budget of year 2019-2020 ₹8,415 crore (USD 1.32 billion) were allocated (0.3% of the overall budget) for India's own foreign aid programme.

As donor
India is not a member of Development Assistance Committee, which includes the world's major donor countries. Despite that, India has recorded donations to various countries. India also provides non-monetary help in cases of natural disasters by means of sending supplies and manpower for rescue missions. In 2017, General V. K. Singh, the then Minister of State for External Affairs informed that India had been a net donor in 2015-16 by donating inr 77196500000 as aid and receiving only inr 21447700000 from foreign countries and global banks. India's major quantum of foreign aid is given to neighbouring countries. According to India's budget in 2021-22, its direct overseas aid stood at ₹18,154 crore (US$2.4 billion).

In the 2024 budget, the Indian government reduced its overall allocation for aid to foreign countries by 10%. For example, aid to the Maldives has been cut by 22% for the 2024-25 financial year. This reduction comes amid a diplomatic row between India and the Maldives, which has influenced the adjustments in aid allocations. Despite this, Maldives remains the third highest recipient of aid from India, reflecting the country's strategic importance to India. The budget also mentioned cuts in aid to Afghanistan, Bangladesh, Myanmar, and Latin American nations, while allocations for Sri Lanka, African countries, Mauritius, and the Seychelles have seen an increase.