Development Assistance Plans for Neighbouring countries

Context

In the Union Budget 2024-25, the Ministry of External Affairs (MEA) has outlined its development assistance plans, focusing on strategic partners and neighbouring countries. 

About

• A major chunk of the Ministry of External Affairs’ outlay, Rs 4,883 crore, has been earmarked for “aid to countries”. It has been allotted as follows: 
• Bhutan: It acquired the highest useful resource at Rs 2,068.56 crore, though slightly much less than last year’s Rs 2,400 crore. 
• Nepal: It was allocated Rs 700 crore, up from Rs 550 crore in the previous year. 
• Maldives: It maintained a steady allocation of Rs four hundred crore, despite a higher revised amount of Rs 770.90 crore for the previous yr. 
• Sri Lanka: It received Rs 245 crore, an increase from Rs 150 crore last year. 
• Afghanistan: Afghanistan gets Rs 200 crore, illustrating India’s role in helping the country’s balance and development amidst ongoing challenges. 
• Maldives: Maldives were given Rs 400 crore in spite of the anti-India protests and feedback from its top management. 
• Iran: Chabahar Port Project continues to receive Rs 100 crore, unchanged for the past 3 years. 
• Africa: African nations collectively acquired Rs 200 crore, showcasing India’s expanding impact on and engagement with the continent. 
• Seychelles: It gets Rs 40 crore, up from Rs 10 crore. 

Benefits of Development Aid Granted to Neighbouring Countries 

• Strengthening Diplomatic Relations: By presenting useful resources to neighbouring nations, India enhances diplomatic ties, fostering stronger political and financial relationships. 
• Promoting Regional Stability: Financial help allows stabilise neighbouring countries, which can lead to a more secure and stable region, reaping benefits India’s strategic interests. 
• Supporting Economic Development: Aid contributes to infrastructure projects, improvement packages, and different projects that may raise economic growth in recipient countries, creating a more rich area. Eg. Chabahar port in Iran. 
• Encouraging Trade and Investment: Improved infrastructure and monetary conditions in neighbouring nations can cause multiplied trade and funding opportunities for India e.g., Agartala-Akhaura railway mission among India and Bangladesh. 
• Enhancing Strategic Influence: Providing resource permits India to exert affect and build alliances, ensuring that neighbouring countries have fantastic engagements with India and align greater carefully with its interests.  
  • Eg. Bhutan’s favour to India on Doklam issue. 
• Addressing Humanitarian Needs: Aid regularly addresses pressing humanitarian wishes, together with health care, training, and disaster alleviation, improving the quality of life in recipient nations.  
  • Eg. India released “Operation Karuna” to offer humanitarian help to Myanmar all through Cyclone Mocha. 
• Strengthening Soft Power: By investing in neighbouring countries’ improvement, India bolsters its soft power and recognition as an accountable regional leader.  
  • Eg. It helps in ensuring the Big Brother syndrome amongst India’s smaller neighbours. 

Challenges in India’s Relationship with its Neighbouring Countries

• Border Disputes: Disagreements over borders, specifically with China and Pakistan, lead to tensions and conflicts.  
  • China’s development has an impact on inside the South Asian area and its near ties with Pakistan pose strategic challenges. 
• Terrorism: Pakistan has continuously furnished guide, safe havens and investment to diverse militant groups, such as Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM), that have attacked in India.  
• Illegal Migration: The inflow of illegal migrants from Bangladesh into India causes demographic and security concerns. 
• Trade Imbalances: Economic issues and alternate barriers with neighbours like Pakistan, Bangladesh, and Nepal affect relations.  
  • Issues related to change restrictions and price lists have regularly exacerbated diplomatic tensions. 
• Water Disputes: Conflicts over sharing river waters, which includes the Indus and Teesta rivers, pressure ties with Pakistan and Bangladesh respectively.   
• Internal Conflicts: Political instability or disputes in neighbouring nations, like Nepal and Bangladesh, affect bilateral relations. 
• Diplomatic Relations: Issues including the remedy of minorities in Sri Lanka and India’s stance on Myanmar’s authorities create friction.  
  • Eg. Free Movement Regime (FMR) issue with Myanmar. 
• Environmental Issues: Natural disasters and environmental issues, like flooding in Bangladesh, require joint efforts and can affect relations.  
  • E.G. Bhutan’s issues over the environmental impact of BBIN and tourism on its fragile ecology. 
• Regional Cooperation: Disagreements inside regional organisations like SAARC and BIMSTEC can preclude effective cooperation. 

Way Forward 

• Strengthening Diplomatic Engagement: Establish and preserve everyday diplomatic dialogues and excessive-stage conferences to address and resolve issues.  
  • Develop and institutionalise mechanisms for resolving disputes, which include joint committees and arbitration panels. 
• Enhancing Economic Cooperation: Negotiate and put into effect fair trade agreements that deal with imbalances and sell mutual advantages.  
  • Collaborate on roads, railways, and energy corridors, to improve connectivity and financial integration. 
• Promoting Security and Stability: Coordinate on local protection tasks to address commonplace threats like terrorism and unlawful migration.  
  • Establish joint venture forces and intelligence-sharing mechanisms. 
• Fostering People-to-People Connections: Increase instructional and tourism initiatives to construct mutual understanding and goodwill among populations. 
• Addressing Environmental and Humanitarian Issues: Synergize on natural disasters and environmental issues the usage of joint efforts and local plans. Provide humanitarian assistance and support in times of crisis, fostering goodwill and cooperation. 
• Strengthening Regional Organisations: Actively take part in local establishments like SAARC and BIMSTEC to deal with regional issues and improve their mechanisms for decision-making and implementation. 
• Addressing Internal and External Factors: Ensure that home policies do not adversely affect relations with neighbouring countries.  
  • Strive for balanced regulations that remember each home and worldwide implications aligning with the concepts of the Gujral Doctrine.

Source: The Hindu