Foreign Aid and India
Why in News?
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The dynamics of foreign aid in India have evolved significantly, reflecting the country’s transition from an aid recipient to an emerging donor. This shift underscores India’s growing economic stature and its strategic interests in global diplomacy.
Important Key Points:
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Historical Context:
Post-independence, India was a major recipient of foreign aid, which played a crucial role in its development trajectory. -
Transition to Donor:
Over the years, India has reduced its dependence on foreign aid and has started extending assistance to other developing countries, especially in Asia and Africa. -
Strategic Aid Distribution:
India’s foreign aid is now strategically aligned with its foreign policy objectives, focusing on regional stability, economic partnerships, and soft power projection. -
Aid to Neighboring Countries:
India provides significant aid to neighboring countries like Bhutan, Nepal, and Afghanistan, supporting infrastructure projects, education, and healthcare initiatives. -
Global South Engagement:
India positions itself as a leader among developing nations, advocating for equitable growth and offering developmental assistance to countries in the Global South.
