By Navami Nandan/Maldives Republic

New Delhi, February 2: India has raised its foreign aid allocation to the Maldives for the fiscal year 2025-26, increasing it from US$54.2 million to over US$69 million, a move that comes as Male’ seeks to rebuild its relationship with New Delhi.

India’s Ministry of External Affairs (MEA) has earmarked over US$633 million for foreign aid allocations, a slight increase from last year’s around US$564 million. The total budget for the MEA stands over US$2.37 billion, with a continued focus on aid to neighbouring and strategically important countries.

India’s foreign aid strategy aligns with its ‘Neighbourhood First’ policy, with approximately US$499 million—64 per cent of the total scheme portfolio—designated for the country’s immediate neighbours. This funding supports several initiatives, including large-scale infrastructure projects such as hydroelectric plants, power transmission lines, housing, roads, bridges, and integrated check-posts.

Bhutan remains the largest recipient of Indian aid, receiving over US$248 million for 2025-26, an increase from around US$239 million the previous year. The Maldives, however, has seen one of the largest percentage increases, reflecting New Delhi’s renewed engagement with Male’.

India’s increased allocation for the Maldives comes as Male’ seeks to mend ties with New Delhi following tensions after President Mohamed Muizzu’s election in 2023. Muizzu, seen as favouring closer ties with China, had asked India to withdraw its military personnel, which India completed in early 2024.

Relations showed signs of improvement following President Muizzu’s visit to India to attend Prime Minister Narendra Modi’s swearing-in ceremony in June and his subsequent state visit in October last year.

Earlier this month, Foreign Minister Abdulla Khaleel and Defence Minister Mohamed Ghassan Maumoon made official visits to India, signalling renewed cooperation between the two nations.

The first meeting of the Maldives-India High-Level Core Group was held in Malé on Wednesday, 29 January 2025. | Photo: MOFA.

The Maldives and India held the first meeting of their High-Level Core Group on Wednesday to advance economic and security cooperation under a framework agreed last year, the Ministry of Foreign Affairs said.

Officials from both countries met in Malé to review progress on areas outlined in A Vision for Comprehensive Economic and Maritime Security Partnership, which was set following President Mohamed Muizzu’s talks with Indian Prime Minister Narendra Modi in October last year.

Discussions covered a range of issues, including development cooperation, trade, digital financing, health, people-to-people ties, and defence and maritime security, the ministry said in a statement.

The two sides will hold the next meeting in India in April.

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