The purpose of the paper is to discuss the evolution of India’s assistance programmes for economic development of partner countries. The recent rejuvenation of India’s aid is in line with the broader phenomenon of the re-appearance of so called ‘emerging donors’. The bulk of publicity is on China and there are still gaps in scholarly writings on India. The paper herein aims to address those gaps, providing insight on the scope and geographical reach of India’s aid activities, the selection of modalities and sectors supported as well as changing patterns of aid administration. The literature review and interviews were conducted to fulfill this goal. The re-appearance of India as a development assistance donor was the consequence of a decade of rapid economic growth. The rejuvenated programmes are more diverse, focused not only on Nepal and Bhutan but also on other countries within India’s extended neighborhood. The point of gravity was moved from infrastructure support towards capacity building. There are continuous attempts to centralize aid administration. India’s foreign aid programme is still growing and seeking strategic long-term orientation.

The purpose of the paper is to discuss the evolution of India’s assistance programmes for economic development of partner countries. The recent rejuvenation of India’s aid is in line with the broader phenomenon of the re-appearance of so called ‘emerging donors’. The bulk of publicity is on China and there are still gaps in scholarly writings on India. The paper herein aims to address those gaps, providing insight on the scope and geographical reach of India’s aid activities, the selection of modalities and sectors supported as well as changing patterns of aid administration. The literature review and interviews were conducted to fulfill this goal. The re-appearance of India as a development assistance donor was the consequence of a decade of rapid economic growth. The rejuvenated programmes are more diverse, focused not only on Nepal and Bhutan but also on other countries within India’s extended neighborhood. The point of gravity was moved from infrastructure support towards capacity building. There are continuous attempts to centralize aid administration. India’s foreign aid programme is still growing and seeking strategic long-term orientation.