Budget 2026: India's Geopolitical Shift Bhutan Gets Lion's Share, Aid to Afghanistan Rises

• Union Budget 2026 reveals India's evolving geopolitical strategy, with the Ministry of External Affairs (MEA) receiving an increased outlay of Rs 22,118.97 crore.
• Bhutan remains India's top strategic partner, securing the largest allocation of Rs 2,288.55 crore for infrastructure and hydropower projects.
• Aid to Afghanistan sees a threefold increase to Rs 150 crore, signaling India's formalizing engagement with the Taliban administration to counter Pakistani influence.
• Nepal and Sri Lanka receive increased commitments of Rs 800 crore and Rs 400 crore respectively, while Mongolia's aid jumps fivefold to Rs 25 crore.
• Allocations for Maldives and Myanmar are trimmed by Rs 50 crore each, and Bangladesh faces a sharp reduction to Rs 60 crore, reflecting complex bilateral ties.

Why It Matters: India's Budget 2026 reflects a strategic shift in foreign aid, prioritizing Bhutan while increasing engagement with Afghanistan.