India's aid to neighbouring Maldives in Budget 2025 increased by ₹120 crore compared to last year's allocation. This year, the government has promised a grant of ₹600 crore to Maldives—an increase of 27 percent from ₹400 crore allotted last year (revised to ₹470 crore).
In 2024, India had significantly slashed the amount of aid given to the Maldives by 48 per cent — compared to ₹770 crore allotted in 2023.
Does the latest spike in the assistance hint at improved diplomatic ties between India and the Maldives?
The diplomatic relations between Maldives and India soured in early January 2024. A row between the two countries erupted after a few Maldivian MPs interpreted Prime Minister Narendra Modi's visit to Lakshadweep as a move to sideline Maldives as a tourist destination.
The controversy erupted soon after Mohamed Muizzu took charge as the Maldives' President. Muizzu, who is believed to be close to China, had requested India withdraw its troops stationed in the Maldives – the move which further hit diplomatic ties between India and Maldives.
However, nine months after the row, tensions between the two countries seemed to have eased. When External Affairs Minister S Jaishankar visited Maldives in August 2024, leaders has described the ties between India and Maldives as the "strongest" bond and "modern" ties.
Later, Mohamed Muizzu extended "heartfelt congratulations" to India on Independence Day,, August 15, 2024. Prime Minister Narendra Modi had then thanked Muizzu, saying, “India considers Maldives a valued friend, and our nations will keep working together for the benefit of our people.”
Not just Maldives, India also increased budget allocation for Afghanistan – from ₹50 crore revised in FY 2024-25 to ₹100 crore in FY 2025-26.
Meanwhile, largest share of development aid continues to be provided to Bhutan at ₹2,150 crore. Here's a look at what other neighburing countries will be getting:
