ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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How India Funds the World: Financial Assistance in the Extended Neighbourhood

In the schema of realist international politics, where political relationships between aspiring powers are often decided by economic underpinnings, financial aid is often a key instrument of foreign policy. In most cases, it serves as a long-term insurance to preserve old relationships, while in others, it acts as a direct incentive to forge new partnerships. Using figures from the "Expenditure Profiles" in the union budgets of the past five fiscal years, this is the second article in a two–part series that assesses India's budgetary aid programme to countries in its extended neighbourhood.

How India Funds the World: Financial Assistance in the Immediate Neighbourhood

In the schema of realist international politics, where political relationships between aspiring powers are often decided by economic underpinnings, financial aid is often a key instrument of foreign policy. In most cases, it serves as a long-term insurance to preserve old relationships, while in others, it acts as a direct incentive to forge new partnerships. Using figures from the "Expenditure Profiles" in the union budgets of the past five fiscal years, this article is the first in a two–part series that provides an assessment of India's budgetary aid programme to countries in India's geographic neighbourhood.

Aid: Old Morality and New Realities

The Indian government has tried to signal a change in its status from 'aid-taker' to 'aid-giver'. The basic purpose of this move is political, to support India's claim to a new status in international affairs, but it is important to pay attention to its economic motivation too.
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