India Increases Foreign Aid to Maldives Amid Diplomatic Reset

India has increased its foreign aid allocation to the Maldives for fiscal year 2025-26 from US$54.2 million to over US$69 million, amid a diplomatic reset. The Ministry of External Affairs (MEA) earmarked over US$633 million for foreign aid, up from around US$564 million, with a total budget over US$2.37 billion. India's 'Neighbourhood First' policy allocates about US$499 million to neighbors. Bhutan remains top recipient with over US$248 million. The increase reflects renewed engagement after tensions following President Muizzu's election in 2023. Relations improved after Muizzu's visits to India in June and October 2025, and recent visits by Maldives ministers.

India has increased its foreign aid allocation to the Maldives for fiscal year 2025-26 from US$54.2 million to over US$69 million, amid a diplomatic reset. The Ministry of External Affairs (MEA) earmarked over US$633 million for foreign aid, up from around US$564 million, with a total budget over US$2.37 billion. India's 'Neighbourhood First' policy allocates about US$499 million to neighbors. Bhutan remains top recipient with over US$248 million. The increase reflects renewed engagement after tensions following President Muizzu's election in 2023. Relations improved after Muizzu's visits to India in June and October 2025, and recent visits by Maldives ministers.

India has increased its foreign aid allocation to the Maldives for fiscal year 2025-26 from US$54.2 million to over US$69 million, amid a diplomatic reset. The Ministry of External Affairs (MEA) earmarked over US$633 million for foreign aid, up from around US$564 million, with a total budget over US$2.37 billion. India's 'Neighbourhood First' policy allocates about US$499 million to neighbors. Bhutan remains top recipient with over US$248 million. The increase reflects renewed engagement after tensions following President Muizzu's election in 2023. Relations improved after Muizzu's visits to India in June and October 2025, and recent visits by Maldives ministers.

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