India, Jan. 25 -- Through budgetary allocations to neighbouring states, the Government of India operationalises and commits to its "Neighbourhood First" policy. These allocations are best understood not as linear trends but as context-driven decisions shaped by regional political, economic, and security considerations. While the Neighbourhood First policy remains a core pillar, its implementation is becoming increasingly nuanced and pragmatic.

In the 2026-27 Budget, allocations are likely to see a moderate nominal increase; however, amid political transitions and upcoming elections in Myanmar, Bangladesh, and Nepal, aid disbursement is expected to be more carefully calibrated.

Further, the budget is likely to reflect an expansion of Ind...