India is not only one of the world’s fastest-growing economies but also an important development partner for many countries in Asia, Africa, and the Indian Ocean region.
Through concessional loans, also known as Lines of Credit (LoC), and development assistance, India helps friendly nations build roads, railways, power projects, ports, hospitals, schools, and other infrastructure. Among all the countries that receive Indian financial assistance, Bhutan is the biggest beneficiary.
How Many Countries Receive Financial Support From India?
Through the Government of India and the Export-Import Bank of India (Exim Bank), India provides loans and development assistance to more than 10 neighbouring and developing countries.
The funds are mainly used for infrastructure projects, transport, energy, healthcare, education, and community development. The aim is to support economic growth and strengthen regional cooperation.
Bhutan Receives the Highest Financial Assistance
According to the latest Union Budget figures, Bhutan receives the largest share of India’s financial assistance.
India has allocated around Rs 2,068.56 crore to Bhutan for hydropower projects, infrastructure development, and other strategic initiatives.
The strong economic partnership between the two countries has made Bhutan India’s biggest recipient of development assistance.
Other Countries That Receive Indian Loans
Apart from Bhutan, India also provides financial support to several neighbouring and partner countries.
- Nepal: Rs 700 crore for cross-border railway projects, integrated check posts, and local development.
- Maldives: Rs 400 crore for infrastructure and development projects.
- Mauritius: Rs 370 crore to strengthen strategic and economic cooperation.
- Myanmar: Rs 250 crore.
- Sri Lanka: Rs 245 crore.
- Afghanistan: Rs 200 crore.
- African countries: Rs 200 crore.
- Bangladesh: Rs 120 crore.
- Seychelles: Rs 40 crore.
- Latin American countries: Rs 30 crore.
These funds help improve connectivity, public services, and economic development in partner countries.
What Is India’s Soft Loan?
Most of India’s overseas financial assistance is provided through concessional Lines of Credit, commonly known as soft loans.
These loans usually carry a low interest rate of 1.5% to 2.5%. For some humanitarian or strategic projects, the interest rate can be even lower.
The repayment period is generally 15 to 20 years, along with a grace period of 3 to 5 years. During the grace period, the borrowing country is not required to repay the principal amount, making these loans more affordable and easier to manage.
First published on: Jul 02, 2026 11:31 PM IST
Get Breaking News First and Latest Updates from India and around the world on News24. Follow News24 on Facebook, Twitter.
End of Article
Related Story
