India boosts aid to Maldives in bid to ‘outdo' China's influence in region
In the country's 2025 national budget released on Saturday, the Maldives received an allocation of 6 billion rupees (US$69 million), up from 4.7 billion rupees last year, marking the biggest increase among South Asian beneficiaries.
India initially earmarked 6 billion rupees for the Maldives in its budget last year, but that sum was later cut to 4.7 billion rupees amid a diplomatic chill triggered by derogatory remarks against Prime Minister Narendra Modi by Maldivian officials.
Bilateral ties reached a low point in November 2023 when Maldivian President Mohamed Muizzu, who campaigned on an 'India Out' platform, ordered New Delhi to withdraw 89 troops operating and maintaining two Indian-gifted helicopters and one fixed-wing aircraft, citing concerns over national sovereignty.
05:23
How India-Maldives tension was sparked by an online row over tourism How India-Maldives tension was sparked by an online row over tourism
Nilanthi Samaranayake, an adjunct fellow at the East-West Centre in Washington, said India and the Maldives had been able to mend ties in recent months, in large part by reaching a compromise on the aircraft issue.
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