India Reduces Financial Assistance to Maldives to $72 Million for the Coming Fiscal Year

India has proposed providing USD 72 million in free aid to the Maldives for the upcoming fiscal year, according to the latest budgetary allocations from the Indian Finance Ministry. This financial assistance is part of a broader fiscal plan covering April of this year to March of the next year and represents a decrease from the current fiscal year’s allocation of USD 92 million. This reduction comes against the backdrop of evolving geopolitical dynamics in the region.

India’s foreign aid strategy, especially in neighboring countries, sees Bhutan as the largest recipient of both free aid and loans, with an earmarked amount of USD 249 million for the fiscal year, emphasizing Bhutan’s strategic importance in India’s foreign policy.

In contrast, the budgeted aid for the Maldives has experienced a downturn. This shift occurs at a time when bilateral relations between India and the Maldives have faced challenges due to recent political developments, including a change in government under President Dr. Mohamed Muizzu, leading to significant adjustments in the country’s foreign policy.

The decrease in India’s financial aid to the Maldives might reflect these recent changes in diplomatic ties and regional politics. Nevertheless, the aid signifies ongoing engagement and a level of cooperation between the two nations amidst the evolving dynamics of international relations in the South Asian region.

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