India increases aid to Maldives with MVR 1.06bn budget allocation

India is set to increase its financial aid to the Maldives for the upcoming year, with an allocation of MVR 1.06 billion in its 2025-2026 proposed budget.

Indian Prime Minister Narendra Modi’s administration presented its 2025-2026 proposed budget to the Parliament on Saturday.

According to the budget, which is published on the Indian Foreign Ministry’s website, shows that the Indian administration has proposed an allocation of Rs 600 crore (approximately MVR 1.06 billion) from the External Affairs Ministry’s budget to provide aid to the Maldives.

This is an increase of Rs 200 crore (MVR 355 million) from the previous year.

The Indian administration had proposed an allocation of Rs 600 crore (MVR 1.06 billion) in its 2024-2025 budget. But the figure was reduced to Rs 400 crore (MVR 723 million).

But the revised figure shows the aid was later increased to Rs 470 crore (MVR 835 million).

Like last year, India is providing the biggest aid to Bhutan, with Rs 2,150 crore (MVR 3.82 billion).

Relations between Male’ and New Delhi had been strained in the early days of Maldivian President dr. Mohamed Muizzu’s presidency after he demanded that India withdraw its troops from Maldives – executing a pledge he made during his presidential campaign. Things escalated further after three Maldivian deputy ministers made disparaging remarks regarding India and Indian Prime Minister Modi following a social media post promoting India’s Lakshadweep as an alternative tourist destination to the Maldives.

The Maldives Foreign Ministry was quick to distance itself from the remarks, saying that they do not represent the views of the Male’ government. The three junior ministers were suspended, and two of them later resigned.

But despite the earlier turmoil, officials from both Male’ and Delhi repeatedly expressed keenness to maintaining relations and engaged in several high-level visits.