India Increases Aid to Maldives in 2025-2026 Budget

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PUBLISHED 02 February 2025

India has decided to increase its financial aid to the Maldives in its 2025-2026 budget, allocating USD 69 million (MVR 1 billion). This marks a rise from the USD 54 million (MVR 833 million) allocated in the previous 2024-2025 budget, which had been USD 18 million below the initial estimate of USD 72 million (MVR 1.1 billion).


In total, India has pledged USD 250 million (MVR 3.9 billion) in aid to various countries. The largest share, USD 80 million (MVR 1.2 billion), has been allocated to Nepal, followed by the Maldives, which receives the second-largest amount—approximately 25% of India's total foreign aid budget. The third-largest aid package goes to Mauritius at USD 58 million (MVR 894 million).


Other beneficiaries of Indian aid include Afghanistan, Bhutan, Bangladesh, Myanmar, Sri Lanka, Mongolia, and Seychelles.


Despite initial tensions between India and the Maldives following President Dr. Mohamed Muizzu's election, bilateral relations have improved after his visit to India. This year, Maldivian Foreign Minister Abdulla Khaleel also visited the country, further strengthening ties.


Last year, India allocated USD 293 million (MVR 4.5 billion) for foreign aid distribution.