India’s development assistance to the Maldives increased by 50% but actually spent less

In this year’s interim Budget, India increased its development assistance to the Maldives by 50%, from ₹ 400 crore to ₹ 600 crore, in response to the Ministry of External Affairs’ (MEA) request for funds.

Despite India’s allocation of ₹ 400 crore, the revised figures show that the country actually spent ₹ 770 crore.

India’s development cooperation covers a wide range of topics, from business to culture, energy to engineering, health to housing, IT to infrastructure, sports to research, and so on, depending on the interests of partner nations.

Under the leadership of the archipelago’s pro-China President Mohamed Muizzu, the Maldives are perceived to be sliding away from their longtime ally India.

Indians retaliated in a recent diplomatic spat over disparaging remarks made by certain Maldivian officials over Prime Minister Narendra Modi’s visit to the Union Territory of Lakshadweep.

Since the dispute with the Maldives, the administration has pushed Lakshadweep as a different travel option for Indians visiting the country. In her interim Budget 2024 statement today, Finance Minister Nirmala Sitharaman announced that the government would make considerable investments in the nation’s tourist industry.

For 2024–2025, the Ministry of External Affairs (MEA) has been allotted ₹ 22,154 crore, compared to ₹ 18,050 crore in the previous year. With a ₹ 2,068 crore allocation, Bhutan has received the greatest portion of aid in accordance with India’s ‘Neighbourhood First’ policy.

“To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure, and amenities will be taken up on our islands, including Lakshadweep. This will help in generating employment also,” Ms Sitharaman stated.

“Our economic strength has made the country an attractive destination for business and conference tourism. Our middle class also now aspires to travel and explore. Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship,” Mr Sitharaman added.

For 2024–2025, the Ministry of External Affairs (MEA) has been allotted ₹ 22,154 crore, compared to ₹ 18,050 crore in the previous year. With a ₹ 2,068 crore allocation, Bhutan has received the greatest portion of aid in accordance with India’s ‘Neighbourhood First’ policy.