India Extends Rs 423 Crore Aid to Muslim Countries Amid Pakistan Tensions

India Extends Rs 423 Crore Aid to Muslim Countries Amid Pakistan Tensions
Amid heightened tensions with Pakistan following the April 22, 2025, Pahalgam terror attack, India has announced Rs 423 crore in developmental aid to Muslim-majority countries, including Afghanistan, Maldives, and Bangladesh, as part of its 2025 foreign aid strategy. This move underscores India’s commitment to fostering regional cooperation and goodwill, even as it navigates a fragile ceasefire and prepares to confront Pakistan at a UN committee meeting. This article explores the aid’s purpose, its strategic significance, and its implications.

Details of the Aid Package
The Rs 423 crore aid package targets infrastructure, education, and healthcare projects in Muslim-majority nations. Afghanistan receives Rs 200 crore for ongoing reconstruction efforts, including scholarships and medical supplies, reflecting India’s support for Afghan stability despite not recognizing the Taliban regime. The Maldives is allocated Rs 123 crore to bolster coastal infrastructure, aligning with India’s ‘Neighbourhood First’ policy. Bangladesh receives Rs 100 crore for trade and educational initiatives, despite recent diplomatic strains. The aid, drawn from the Ministry of External Affairs’ Rs 5,483 crore foreign assistance budget, aims to strengthen bilateral ties and promote development in recipient countries.

Strategic Diplomacy Amid Tensions
India’s aid announcement, timed during strained relations with Pakistan, serves as a diplomatic counterpoint to its firm anti-terrorism stance. Following Operation Sindoor, which targeted terror camps in Pakistan, India is leveraging soft power to build alliances with Muslim nations, countering Pakistan’s narrative in the Islamic world. By supporting development in Afghanistan and the Maldives, India reinforces its role as a reliable partner, contrasting with Pakistan’s economic struggles, as evidenced by its reliance on IMF loans. The aid also aligns with India’s broader goal of securing influence in the Indo-Pacific region.

Implications and Regional Dynamics
The aid strengthens India’s image as a benevolent regional leader, potentially swaying opinion at the UN, where India plans to present evidence of Pakistan’s terror links. However, Pakistan may perceive this as a provocative move, risking further ceasefire violations. The aid’s success hinges on effective implementation and recipient nations’ cooperation. As India balances diplomacy with security, this strategic outreach underscores its multifaceted approach to regional stability.