India Cuts Aid Allocation for Maldives in 2026–27 Budget
India’s Prime Minister Narendera Modi (L) with President Dr Mohamed Muizzu during the state banquet held on July 25, 2025, to honour Modi’s visit to the Maldives | Photo: President’s Office
India has reduced the amount of financial assistance allocated to the Maldives in its 2026–2027 national budget, according to a report by Indian media outlet Bhaskar English.
The report said India has earmarked ₹550 crore (approximately USD 69 million) for the Maldives in the upcoming fiscal year. This represents a decrease from the ₹600 crore (around USD 72 million) allocated to the Maldives in the 2025–2026 budget.
Bhutan received the largest allocation among South Asian countries, with ₹2,288.55 crore (about USD 275 million), an increase of roughly ₹138 crore compared to the previous year, the report noted.
Nepal ranked second, with an allocation of USD 87 million, while Mauritius followed with an allocation of USD 69 million, the same amount allocated to the Maldives.
Despite the reduction, India continues to implement several development projects in the Maldives through its line of credit. These include housing initiatives and the Greater Malé Connectivity Bridge project, which remains one of the largest India-supported infrastructure projects in the country.
India’s external assistance allocations are outlined annually in its national budget and cover development cooperation and financial aid to neighbouring and partner countries.
