India earmarks USD 72M from budget for aid to Maldives

Neighboring India has earmarked USD 72 million (MVR 1 billion) in its budget to provide grant assistance to the Maldives.

The projected state budget for March 2024-April 2025 submitted to India’s Parliament has allocations of aid to a number of neighboring countries.

According to India’s Finance Ministry, it has earmarked 600 million crore Indian Rupees – equivalent to USD 72 million - for the Maldives. This is USD 20 million less than last fiscal year, when India allocated USD 92 million.

The biggest aid package this year is allocated to Bhutan, with USD 249 million.

The lower financial aid comes amid a strained relations between Maldives and India. Maldivian President Dr. Mohamed Muizzu asked India to withdraw its troops shortly after assuming office, and chose India’s rival, China, for his first state visit.