In a significant move underscoring its commitment to regional development, India has announced plans to increase its aid to the Maldives by 50 percent in the upcoming fiscal year, which begins in April. The new allocation, outlined in the proposed budget presented by Prime Minister Narendra Modi’s government on February 1, is set to amount to approximately USD 68.7 million in Rupee equivalent.
This boost represents an increase of around USD 23 million compared to the previous fiscal year’s allocation, which initially stood at roughly USD 46 million. Although the current year’s aid was later revised to USD 54 million, the planned figures for the new fiscal year mark a substantial rise in support to the island nation.
According to details provided by the Ministry of External Affairs, while Bhutan continues to receive the largest share of India’s foreign aid, the Maldives has emerged as a key development partner. This increased aid is expected to further enhance bilateral cooperation and support various infrastructural and developmental projects across the Maldives.
India’s longstanding assistance has been instrumental in driving major initiatives in the Maldives, including the construction of the Thila-Malé Bridge and the development of 4,000 housing units under the Gedhoruveriyaa Housing Scheme. With the enhanced aid package, officials anticipate bolstering economic growth and facilitating sustainable development throughout the country.
The new fiscal year’s budget highlights India’s strategic focus on strengthening regional ties and fostering long-term partnerships. As the Maldives continues its journey toward greater self-reliance and modernization, this substantial increase in aid is set to play a crucial role in supporting the nation’s developmental goals.
