News Desk
NEW DELHI — India has increased its external aid to the Maldives, allocating ₹6 billion (MVR 1.06 billion) in its 2025-26 budget, a ₹2 billion (MVR 354 million) increase from last year.
The budget, presented to Lok Sabha on Thursday, is the first of Prime Minister Narendra Modi’s third term. According to the External Affairs Ministry’s figures, last year’s initial allocation of ₹4 billion (MVR 732 million) was later revised to ₹4.7 billion (MVR 835 million).
As in previous years, Bhutan remains the largest recipient of Indian aid, with an allocation of ₹21.5 billion (MVR 3.82 billion).
The increased aid comes amid a thaw in India-Maldives relations. President Dr. Mohamed Muizzu’s administration initially distanced itself from India following his election, after a campaign that included anti-India rhetoric. However, diplomatic tensions have since eased.
The Maldives’ tourism sector, a key pillar of its economy, faced a downturn after government-affiliated figures publicly criticized Indian Prime Minister Narendra Modi, prompting their suspension. The administration later worked to repair ties, with former Tourism Minister Ibrahim Faisal leading roadshows that helped restore people-to-people connections and boost Indian tourist arrivals.
The aid increase suggests India’s confidence in improving ties with the Maldives as both nations navigate their strategic and economic relationship.
