A latest report on official development assistance (ODA) by the Nepal government released in April 2016 has shown that India’s ODA disbursement to Nepal plummeted in 2015. The report states that the ODA fell by over 50 percent in the first year of the NDA government, allowing China to overtake India in the list of top assistance providers to Nepal.
Nepal’s Prime Minister KP Sharma Oli had visited India in February 2016, after the two countries resumed ties following a blockade at the border due to an internal crisis in Nepal. India had also played a key role in helping Nepal rebuild after 2015’s devastating earthquake. New Delhi had provided $1,400 million to Kathmandu for reconstruction.
The report also added that China’s disbursement of ODA stood at $37.95 million while India’s accounted for a little over $22 million. It is for the first time since 2010 that India has not figured in the list of the top five ODA providers (in terms of disbursement) among countries who are Nepal’s development partners. China is presently in the fourth position after the UK, the US and Japan, and is followed by Switzerland.
The Development Cooperation Report has also acknowledged the important role that India and China have played in providing technical assistance to Nepal. India has provided ODA through scholarships, training and study tours. This has not been fully reflected in the total volume of assistance provided by India.
“Though both these countries are very important aid providers to Nepal, the assistance received from them has not been well reported as in the previous years”, the report stated.
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