India Reduces Grant Aid to Maldives

India has reduced grant aid to the Maldives for the current fiscal year from a proposed US$72 million to US$47 million, a 48% cut, amid weakening bilateral relations. Last year's aid was US$91 million. The reduction follows the Muizzu administration's shift toward strengthening ties with China. The previous Solih administration had pursued Indian-funded projects like the Greater Malé Connectivity Bridge. Relations deteriorated after three Maldivian officials made insulting remarks about Indian PM Modi, leading to a drop in Indian tourists. However, the current administration is now working to improve relations.

India has reduced grant aid to the Maldives for the current fiscal year from a proposed US$72 million to US$47 million, a 48% cut, amid weakening bilateral relations. Last year's aid was US$91 million. The reduction follows the Muizzu administration's shift toward strengthening ties with China. The previous Solih administration had pursued Indian-funded projects like the Greater Malé Connectivity Bridge. Relations deteriorated after three Maldivian officials made insulting remarks about Indian PM Modi, leading to a drop in Indian tourists. However, the current administration is now working to improve relations.

India has reduced grant aid to the Maldives for the current fiscal year from a proposed US$72 million to US$47 million, a 48% cut, amid weakening bilateral relations. Last year's aid was US$91 million. The reduction follows the Muizzu administration's shift toward strengthening ties with China. The previous Solih administration had pursued Indian-funded projects like the Greater Malé Connectivity Bridge. Relations deteriorated after three Maldivian officials made insulting remarks about Indian PM Modi, leading to a drop in Indian tourists. However, the current administration is now working to improve relations.

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