New Delhi, Feb 3 (PTI) – A parliamentary committee has emphasized the need for stable and predictable financial allocations to the Ministry of External Affairs (MEA), asserting that India's rising global stature demands consistent investment in diplomatic, economic, and cultural engagements. The panel warned that budgetary fluctuations could undermine India’s credibility in bilateral and multilateral initiatives.
In its Fourth Report on Demands for Grants (2024-25) for the MEA, tabled in Parliament on Monday, the panel pointed out disparities between Budget Estimates (BE) and Revised Estimates (RE) over the years. Stressing the importance of adequate financial planning, it urged the government to minimize budgetary differences and shield key areas from cuts.
Recognizing Bangladesh as a crucial regional partner, the committee expressed optimism that funding would increase once normalcy resumes. It recommended that, if needed, additional financial support be sought at the RE stage to sustain India's developmental commitments.
Similarly, the panel noted that budgetary allocations for the Chabahar Port in Iran had remained stagnant at ₹100 crore in BE 2023-24, RE 2023-24, and BE 2024-25. This was attributed to ongoing negotiations on the long-term main contract for the port’s development. However, following the signing of this contract on May 13, 2024, between India Ports Global Limited (IPGL) and Iran's Ports and Maritime Organization (PMO), the committee stressed the need for expedited completion of the project. It recommended an upward revision of funds to meet India's commitments and urged swift procurement of remaining port equipment to ensure installation by mid-2025.
Another significant concern raised was India's relatively low financial assistance to Latin American nations, which stood at ₹30 crore in BE 2024-25. The committee highlighted that Latin America’s aid allocation is disproportionately low compared to other regions, such as Africa and South Asia. It called for a substantial increase in budgetary support to Latin American countries to strengthen India’s presence in the region.
On Afghanistan, the panel underscored India's commitment as a trusted development partner and urged the government to ensure effective utilization of allocated funds, particularly for women’s empowerment and humanitarian support, without compromising national priorities.
The report’s findings and recommendations reinforce the need for a stable and well-funded foreign policy strategy, ensuring that India's global commitments remain consistent despite budgetary constraints.
In its Fourth Report on Demands for Grants (2024-25) for the MEA, tabled in Parliament on Monday, the panel pointed out disparities between Budget Estimates (BE) and Revised Estimates (RE) over the years. Stressing the importance of adequate financial planning, it urged the government to minimize budgetary differences and shield key areas from cuts.
Budget Cuts in Aid to Bangladesh and Chabahar Port
One of the key observations in the report was the reduction in India's aid to Bangladesh, which dropped from ₹200 crore in BE 2023-24 to ₹120 crore in BE 2024-25. The MEA attributed this decline to the completion of major infrastructure projects, such as the India-Bangladesh Friendship Pipeline (IBFPL) and the supply of 20 broad-gauge locomotives, along with the political and security situation in Bangladesh.Recognizing Bangladesh as a crucial regional partner, the committee expressed optimism that funding would increase once normalcy resumes. It recommended that, if needed, additional financial support be sought at the RE stage to sustain India's developmental commitments.
Similarly, the panel noted that budgetary allocations for the Chabahar Port in Iran had remained stagnant at ₹100 crore in BE 2023-24, RE 2023-24, and BE 2024-25. This was attributed to ongoing negotiations on the long-term main contract for the port’s development. However, following the signing of this contract on May 13, 2024, between India Ports Global Limited (IPGL) and Iran's Ports and Maritime Organization (PMO), the committee stressed the need for expedited completion of the project. It recommended an upward revision of funds to meet India's commitments and urged swift procurement of remaining port equipment to ensure installation by mid-2025.
Myanmar, Latin America, and Afghanistan: Budgetary Allocations and Recommendations
The panel also acknowledged delays in India’s infrastructure projects in Myanmar, citing the country’s political instability as a major hurdle. However, it recommended that the MEA continue diplomatic efforts to accelerate progress on key projects like the Kaladan Multi-Modal Transit Transport (KMMTT) and the India-Myanmar-Thailand Trilateral Highway.Another significant concern raised was India's relatively low financial assistance to Latin American nations, which stood at ₹30 crore in BE 2024-25. The committee highlighted that Latin America’s aid allocation is disproportionately low compared to other regions, such as Africa and South Asia. It called for a substantial increase in budgetary support to Latin American countries to strengthen India’s presence in the region.
On Afghanistan, the panel underscored India's commitment as a trusted development partner and urged the government to ensure effective utilization of allocated funds, particularly for women’s empowerment and humanitarian support, without compromising national priorities.
Call for a Contingency Reserve Fund
The committee further recommended that the MEA collaborate with the Ministry of Finance to establish a dedicated contingency reserve fund to address emergency diplomatic or humanitarian situations effectively.The report’s findings and recommendations reinforce the need for a stable and well-funded foreign policy strategy, ensuring that India's global commitments remain consistent despite budgetary constraints.
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