Key Details
The OECD’s Development Co-operation Profile highlights the scale, structure, and distinctive features of India’s development partnerships across the Global South.
Theme | Key Finding | Why It Matters |
|---|---|---|
Total Development Support | Estimated at US$ 7.66 billion (2022) | Reflects the overall scale of India’s development partnership footprint |
Bilateral Development Budget | US$ 588 million in FY 2024–25 | Represents annual development cooperation allocations |
Development Model | Based on demand-driven South-South cooperation | Projects are shaped by partner-country priorities rather than donor conditionalities |
Institutional Framework | Managed through the Development Partnership Administration (DPA) | Provides a dedicated structure for project implementation and oversight |
Financing Instruments | Grants, concessional Lines of Credit and capacity-building programmes | Combines infrastructure financing with technical cooperation |
Major Credit Lines | US$ 700 million for Mongolia and US$ 300 million for Vietnam | Illustrates the continued role of concessional financing in development diplomacy |
Geographic Reach | Projects span South Asia, Africa, Latin America and the Indo-Pacific | Demonstrates broad international engagement |
Mobility Partnerships | India–EU mobility framework supports movement of students and skilled professionals | Extends development cooperation beyond infrastructure and finance |
Multilateral Engagement | India supported African Union membership in the G20 | Reflects India’s emphasis on Global South representation |
Summary
OECD Highlights India’s Distinct Development Cooperation Model
The OECD’s updated Development Co-operation Profile for India provides a comprehensive overview of India’s approach to international development partnerships. Unlike traditional aid models that often rely on policy conditionalities, India’s framework emphasizes demand-driven cooperation, where partner countries identify priorities and development projects are designed around locally determined needs.
The profile highlights India’s use of grants, concessional finance, technical assistance, and capacity-building programmes to support long-term development outcomes across partner countries.
India’s Development Partnership Footprint Extends Across the Global South
According to the OECD profile, India’s total estimated development support reached US$ 7.66 billion in 2022, while its bilateral development assistance budget stood at US$ 588 million during FY 2024–25.
Indian-supported projects span South Asia, Africa, Latin America and the Indo-Pacific, covering sectors such as transport infrastructure, energy, water supply, digital public infrastructure, institutional capacity building, and human resource development.
DPA Anchors India’s Development Architecture
The report highlights the central role of the Development Partnership Administration (DPA) within the Ministry of External Affairs, which manages India’s development cooperation programmes through dedicated divisions responsible for project appraisal, technical cooperation, grant assistance, and humanitarian support.
A key financing mechanism remains the Indian Development and Economic Assistance Scheme (IDEAS), through which India provides concessional Lines of Credit for development projects. Recent examples include a US$ 700 million credit facility for Mongolia and a US$ 300 million line of credit for Vietnam.
Beyond Aid: Capacity Building, Mobility and Global South Representation
The OECD notes that India’s development cooperation increasingly extends beyond infrastructure financing to include technology partnerships, skills development, digital public infrastructure, and institutional cooperation.
The profile also references the India–EU Common Framework on Migration and Mobility, which seeks to facilitate legal pathways for students, researchers, skilled professionals, and intra-corporate mobility between India and Europe.
At the multilateral level, the report highlights India’s efforts to strengthen Global South representation in international institutions, including its role in supporting the African Union’s admission as a permanent member of the G20during India’s presidency.
What is a Line of Credit (LoC)?
A Line of Credit (LoC) is a concessional financing arrangement through which a government provides long-term funding to another country for development projects. These loans typically offer lower interest rates and longer repayment periods than commercial borrowing and are commonly used to finance infrastructure, energy, transport, and public-service projects.
Policy Relevance
Strengthens India’s Development Diplomacy: Development partnerships help India build long-term economic and strategic relationships across the Global South.
Supports Infrastructure and Capacity Building Abroad: India’s assistance model combines financing, technical expertise, and institutional support to strengthen development outcomes in partner countries.
Creates Opportunities for Indian Industry and Expertise: Concessional credit lines often support overseas projects that involve Indian firms, technology providers, and technical professionals.
Promotes South-South Cooperation: The demand-driven model reinforces local ownership and positions India as an important development partner for emerging economies.
Expands India’s Global Influence: Development partnerships, mobility frameworks, and multilateral engagement collectively strengthen India’s role in international governance and global development cooperation.
Follow the Full Report Here: OECD Development Co-operation Profiles: India