In a significant move to bolster bilateral ties and support Nepal’s development initiatives, India has announced an increase in its annual grant to Nepal. For the fiscal year 2024-25, India has allocated Rs11.2 billion, reflecting a strong commitment to aiding its neighbour’s economic and infrastructural growth.
The increased grant marks a substantial rise from previous years, underscoring the deepening partnership between the two South Asian nations. This financial support is expected to be directed towards various sectors, including education, healthcare, infrastructure, and rural development, all of which are critical for Nepal’s socio-economic progress.
India’s Ambassador to Nepal, Naveen Srivastava, highlighted the importance of the grant in a recent statement. “This enhanced allocation demonstrates India’s unwavering support for Nepal’s development aspirations. We are committed to working closely with the Nepali government to ensure that these funds are utilized effectively for the benefit of the Nepali people,” he said.
The allocation for the fiscal year 2024-25 includes several key projects aimed at improving the quality of life for Nepal’s citizens. These projects range from the construction of schools and hospitals to the development of rural infrastructure and water supply systems. Additionally, a portion of the grant will be allocated to capacity-building initiatives aimed at enhancing the skills and capabilities of Nepali professionals and institutions.
Nepal’s Finance Minister, Prakash Sharan Mahat, expressed gratitude for India’s continued support, noting that the increased grant will play a vital role in achieving the country’s development goals. “India has been a steadfast partner in our journey towards progress. This increased financial assistance will significantly contribute to our efforts in addressing key development challenges and improving the livelihoods of our people,” he stated.
The announcement of the increased grant comes at a time when Nepal is striving to recover from the economic impacts of the COVID-19 pandemic and various natural disasters. The funds are expected to provide a much-needed boost to the country’s recovery efforts, helping to revitalize critical sectors and stimulate economic growth.
As Nepal and India continue to strengthen their bilateral relations, this enhanced grant allocation is a testament to the enduring friendship and cooperation between the two nations. Both countries are optimistic that this financial support will pave the way for further collaboration and mutual prosperity in the years to come.