Now Reading: India raises Maldives aid to Rs 600 crore, up 28% from last year
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India raises Maldives aid to Rs 600 crore, up 28% from last year
India raises Maldives aid to Rs 600 crore, up 28% from last year
India has increased aid to the Maldives to Rs 6 billion (US$69 million) in its 2025 budget, up from Rs 4.7 billion last year, the biggest increase among South Asian beneficiaries. The hike comes after ties were strained in late 2023 when Maldivian President Mohamed Muizzu ordered the withdrawal of 89 Indian troops, citing sovereignty concerns.
The initial allocation last year was also Rs 6 billion but was cut after derogatory remarks against Prime Minister Narendra Modi by Maldivian officials sparked a diplomatic chill. Analysts see the restored funding as part of India's effort to counter China's growing influence in the region.
Bilateral ties have improved in recent months after a compromise on the aircraft issue, with New Delhi and Male reaching an agreement that allowed Indian personnel to remain under a revised arrangement.
Indian Opinion Analysis
India's increased aid to Male signals a resumption of normal ties after a year of turbulence. The Maldives remains strategically vital for New Delhi's Indian Ocean security posture, especially with China's growing naval presence in the region. The aid is a fraction of what China has pledged through its Belt and Road Initiative, but India offers faster disbursement and no debt-trap concerns. The next signal to watch is whether Male will allow India to resume maritime surveillance flights from its territory, which were suspended after the troop pullout.
Source: scmp.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
