India’s contributions to multilateral organisations declines marginally in FY25

India’s financial commitments to international organisations have shown fluctuations in recent years. According to budget data, India’s total contribution to international bodies has decreased from ₹2,764.8 crore in the 2023-24 revised estimate (RE) to ₹2,620.9 crore in the 2024-25 budget estimate (BE), reflecting a 5.2 per cent decline.

Historically, India’s contributions have seen an upward trend, rising from ₹1,508.3 crore in 2015-16 to ₹2,298.6 crore in 2019-20. Countries typically contribute to international organisations as part of multilateral efforts aimed at alleviating global poverty, enhancing security, and ensuring financial stability, among other objectives. Through these contributions, they aim to carve out a significant role in global politics.

Amit Singh, Associate Professor at the Special Centre for National Security Studies at Jawaharlal Nehru University, explained, “Compared to countries like the United States and China, India’s contributions might seem smaller, but overall, they are still substantial. Although growth in contributions has slightly decreased, we also need to allocate resources to address our domestic concerns.”

In FY25, out of the 161 international bodies, a significant portion (42.9 per cent) experienced stagnant contributions, while 39.1 per cent saw an increase, around 9.9 per cent registered a decline and new funding was allocated to eight organisations. Five bodies (3.1 per cent) did not receive any contributions during this financial year. “The funds are being strategically allocated, with some organisations receiving more than others based on the state’s priorities and needs,” Singh added.

Professor of Diplomatic Practice at the School of International Affairs at the OP Jindal Global University and India’s former Ambassador to France, Mohan Kumar, explained, “If we have reduced contributions to certain institutions that don’t add significant value to India, that’s not necessarily a bad thing. However, we should correspondingly increase our contributions where they matter most. For example, our contributions to the UN are not up to the mark, so we need to fund more towards the UN. It’s essential to focus on fewer institutions and do well in those areas.”

FinMin leads

In terms of ministry-wise contributions, the Ministry of Finance led the way with₹1,201.5 crore, followed by the Ministry of External Affairs (MEA) at ₹558.1 crore and the Ministry of Communications with ₹155.6 crore. However, both the finance and MEA recorded a year-on-year decline in their contributions.

Kumar explained, “The MEA likely pays significant amounts to various UN agencies, such as UNCTAD and UNHCR, while the Ministry of Finance may handle payments to organisations like the World Bank, IMF, and others.”

The International Development Association topped the list of organisations’ contributions in FY25 with ₹582.6 crore from the finance ministry. The Nalanda International University received ₹200 crore, and the United Nations was allocated ₹175 crore, both from the MEA.

“While multilateral cooperation around the world has been declining, India should continue to rely on it. Otherwise, everything would be reduced to bilateralism, which would not align with India’s practice of multilateralism and strategic partnerships,” Kumar added.

Singh remarked, “India has been contributing to several international organisations to build a respectable image and secure its place in global politics. Historically, the US has been the primary funder of many of these organisations, and China has also increased its participation. In response, India is gradually enhancing its involvement through contributions to developmental activities.”