India is Evolving from Being a ‘Recipient’ to a ‘Donor’

In the last decade, India has emerged from a ‘recipient’ of foreign aid into a ‘donor’.


India is one of the youngest and fastest emerging economies in the world. Over the years, the nation has evolved and continues to do so politically, diplomatically and digitally as well as through policies. In the last thirty years, India has emerged from a ‘recipient’ of foreign aid to a ‘donor’. India is a nation, walking that fine line between being a ‘developing’ and ‘developed’ country.

According to an article by the Centre for Global Development, ‘India Emerges as an Aid Donor’, “India has quietly transitioned to a donor country, emerging on the world stage as a significant provider of development assistance.”

The article further states that India was the world’s largest recipient of foreign aid in the mid-1980s. In 1993, the government had announced the acceptance of only bilateral development assistance.

The Centre for Policy Research states that “India has emerged as the second largest donor after China in volume and quality of aid given by countries of the Global South.

India is also the fifth largest donor to Afghanistan. In 2011, it allocated about $7 billion development assistance to South Asia and Africa. Moreover, to strengthen its economic presence in Cambodia, Laos, Myanmar, and Vietnam, the government in 2016 set up a Rs500 crore Project Development Fund.”


India is building and strengthening its relations with developing countries through traditional aid program and shared colonial history. The country’s foreign assistance consists of grants, preferential loans, contributions to international organizations and international financial institutions as well as subsidies for preferential bilateral loans.

The hue and cry raised in regards to the government contemplating on foreign aid were unwarranted. But the Central Government has given the go-ahead for the donation of Rs700 crore from UAE. There is no denying that Kerala needs all the financial assistance and donations that it can get. The floods have left the state in a shocking condition.

India declined international assistance for its heart-wrenching calamities such as the 2004 tsunami, 2005 Kashmir earthquake, and the 2014 Kashmir floods. The country has depended on its internal financial resources from respective state governments and citizens.

India is Evolving from Being a ‘Recipient’ to a ‘Donor’
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India is Evolving from Being a ‘Recipient’ to a ‘Donor’
In the last decade, India has emerged from a ‘recipient’ of foreign aid into a ‘donor’.
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The Policy Times
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