India’s aid to Maldives forms a major part of its 2025 budget.
In a significant financial commitment, the Maldivian government has projected that India will provide MVR (Maldivian Rufiyaa equals) 1.6 billion (approximately USD 104 million) in grant aid for the year 2025.
This contribution is expected to account for 72 percent of the total foreign aid that the archipelago nation will receive from friendly countries, as detailed in the proposed State Budget for 2025 submitted to Parliament.
The proposed budget, announced by President Mohamed Muizzu’s administration, estimates total international grant aid at MVR 2.25 billion.
India’s financial support emerges as a critical component of the Maldivian government’s foreign aid strategy, reinforcing the strong bilateral ties between the two nations.
Aid from Other Countries
While India remains the primary donor, the Maldivian government anticipates additional support from China, which is expected to contribute MVR 502 million, making up 22 percent of the projected free aid.
The budget also outlines anticipated assistance from other nations, including Japan, Pakistan, Saudi Arabia, and the Netherlands, with approximately MVR 336 million expected from international organizations.
Continued Support in 2023
India’s financial assistance to the Maldives has been substantial in recent years.
During President Muizzu’s recent state visit to India, a support package worth USD 400 million was announced.
Additionally, India agreed to roll over Treasury Bills subscribed by the State Bank of India, amounting to USD 100 million, for an additional year, further cementing its role as a key partner in the Maldives’ economic development.
