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.
