As per data presented to the Lok Sabha by Minister of State for External Affairs VK Singh, India provided development aid of Rs 221 crore to Afghanistan between April 1, 2016 and March 27, 2017 as against Rs 880 crore in 2015-16 and Rs 723 crore in 2014-15.
In case of Bangladesh, the amount given by India in 2015-16 was Rs 155 crore which fell to Rs 68 crore in 2016-17. India had granted aid of Rs 197 crore to Bangladesh in 2014-15.
There was a sharp reduction in assistance to Sri Lanka as well.
As per the figures, India had given Rs 499 crore and Rs 403 crore to Colombo in 2014-15 and 2015-16 respectively but the amount in the previous fiscal (till March 27) was only Rs 73 crore.
Mr Singh said India had given a total of Rs 2,985 crore to Bangladesh, Bhutan, Nepal, Sri Lanka, Maldives, Myanmar and Afghanistan in 2016-17 while the amount in 2015-16 was Rs Rs 7290 and in 2014-15, it was Rs 6249.
To a specific query on whether relations with neighbouring countries have strained due to the slash in aid, the minister claimed there is no cut as such.
To a separate question, he said India has committed to provide Rs 4,500 crores to Bhutan during the country's 11th Five Year Plan from 2013-18.
Asked whether India's strategic investments in the region are comparable to investments made by China, Mr Singh refused to make any comparison.
"India's investments and development projects are based on the priorities of India and the country concerned and these stand firmly on their own," he said.
The minister said India's aid to these countries cannot be compared to investments made by any other country including China.
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