India increased its grant assistance to Nepal by 12.97 percent in the fiscal year 2021-22, thus taking the total grant to around $136 million, reported The Kathmandu Post.

Among the South Asian countries, Bhutan received the highest, close to $411 million, in India grants. It also received an additional $120 million in loans. Sri Lanka received around $27 million, an increase of 166 percent from the previous year. The Maldives has been allotted $34 million, an increase of close to 43 percent from the last year.

Earlier in 20-21, the grant assistance to Nepal had been reduced by a whopping 26 percent, to $120 million. The year was also marred by the economic setback due to the pandemic.

The grant assistance provided to Nepal was the second-highest among the South Asian countries. However, it still remained less than what India had provided in 2019-20, $164 million.

Importantly, the increase in grant assistance comes at a time when Nepal has been marred in political turmoil. Meanwhile, in 2020, the relations between the two nations nosedived following the map controversy. In the same year, the grant assistance saw a reduction of around 26 percent.

India also undertakes high-impact community development projects in these countries.