India has planned to increase the aid extended to the Maldives by 50 percent compared to the previous fiscal year. The allocation has been included in the budget for India’s new fiscal year, which begins in April.
Indian Prime Minister Narendra Modi's government presented the proposed budget for the upcoming fiscal year to the country’s legislature on 1 February. The proposed budget outlines foreign aid allocations as in previous years. According to the details of the budget estimates for the India’s Ministry of External Affairs, Bhutan will continue to receive the largest share of foreign aid,
The budget includes an allocation of approximately USD 68.7 million in Rupee equivalent for the Maldives. In comparison, the current fiscal year saw an allocation of roughly USD 46 million. Therefore, the budget for the new fiscal year includes an increment of USD 23 million compared to the previous year.
Although the current year’s initial allocation was USD 46 million, the figure was later revised, bringing the total for the current fiscal year is USD 54 million.
India remains a key development partner of the Maldives and has consistently provided substantial assistance. While several key infrastructural projects in the Maldives are being implemented with Indian assistance, this includes the construction of the Thila-Male’ Bridge as well as the construction of 4,000 flats under the Gedhoruveriyaa Housing Scheme.