Budget 2023: Why India Needs to Increase Funding for the Ministry of External Affairs
Budget 2023: Why India Needs to Increase Funding for the Ministry of External Affairs
Increased funding for the MEA would enable it to enhance India's diplomatic capabilities, respond effectively to emerging global challenges and safeguard the rights of Indians abroad

India’s budget for FY2023-24 will be announced on February 1 and with it, the case of increasing the budget of the Ministry of External Affairs (MEA) becomes strong. At the end of the last calendar year, the 17th Lok Sabha’s Standing Committee recommended that the Central government increase the MEA funding. Despite the crucial role it plays in shaping the country’s foreign policy and representing India’s interests on the global stage, the MEA’s budget has been a mere drop in the ocean. The 31-member panel noted that the MEA’s budget, estimated at Rs 17,250 crore for 2022-23 and 0.44 percent of the country’s GDP, may be inadequate in the context of India’s aspirations to emerge as a global power. The Committee noted that “in its view in connection with India’s rising global profile, engagement and footprint, the allocations made to the MEA are evidently insufficient.” In the Committee’s lens, the budget should be doubled and at least make 1 percent of the Indian GDP.

This view makes sense. Because the paucity of funds may hinder the ministry’s ability to effectively wield its diplomatic sword and secure India’s place as a leading player on the global stage. Economic and strategic interests are closely tied to the quality of a country’s international relationships. As an emerging global power, India needs to have a robust diplomatic presence to navigate the turbulent waters of trade deals, resolve disputes, and promote its interests on the global stage. The MEA plays a crucial role in charting this course, but it must hoist its sails fully with sufficient funding.

There are multiple reasons, often interconnecting, to justify more funding to the MEA. First, the expansion of the Indian elephant in the new fields. Even as of 2023, India still does not have any mission in 48 member states of the United Nations. It is the case after a substantial expansion (in 14 countries) since 2018. Countries like Lithuania, Estonia, Paraguay and the Dominican Republic have no Indian missions.

Not taking China, Russia, the UK and the USA into account due to their sheer size or power, India still has less number of diplomatic missions and posts than Italy, Spain, Germany, France, and Turkey, according to Global Diplomacy Index 2021. In this age of global challenges and connections, we must have a diplomatic corps equipped to weather the storm of emerging threats. Evacuations of the citizens, terrorism and cyber security are significant concerns that require a solid and well-funded diplomatic corps to navigate.

Furthermore, an expanded and better-trained diplomatic corps would allow for better representation of India’s interests abroad and more effective communication and negotiation with other countries. The MEA’s current staff is overworked and understaffed, which limits its ability to carry out its duties effectively. With more funding, the MEA could hire more staff (with lateral entries) and provide better training, improving the quality of its work.

Second, the engagement with the Indian diaspora. In recent years, there has been an increase in the number of Indians working and studying abroad. The MEA is responsible for protecting the rights of these individuals and ensuring that they are not subjected to discrimination or mistreatment. This author has written for this publication in an earlier article about how the diaspora is essential and has different needs. The South Block should work to engage more with them, which will benefit India’s global posturing.

Third, promoting Indian culture and heritage abroad is also an essential aspect of the MEA’s mandate. India has a rich cultural heritage and prolonged civilisational interactions with other nations. Promoting them abroad can also be a soft power tool for India to strengthen its diplomatic ties with other countries. By promoting these aspects of Indian culture, the MEA can help build stronger relationships with other countries and gain more support for India’s interests on the global stage.

In conclusion, the Ministry of External Affairs plays a crucial role in shaping India’s foreign policy and representing India’s interests on the global stage. However, it is currently underfunded, which hinders its ability to carry out its duties effectively. Increased funding for the MEA would enable it to enhance India’s diplomatic capabilities, respond effectively to emerging global challenges, expand its diplomatic corps, promote Indian culture and heritage abroad, and safeguard the rights of Indians abroad. Therefore, we, as a nation, must allocate more budget for the Ministry of External Affairs to make India’s voice count across the globe.

Harshil Mehta is an analyst who writes on international relations, diplomacy, and national issues. Views expressed are personal.

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