New Delhi:

The Ministry of External Affairs (MEA) has allocated Rs 5,483 crore for aid to foreign nations, slightly higher than last year’s Rs 4,883 crore. The overall budget for the MEA stands at Rs 20,516 crore, with aid to neighbouring and strategic countries remaining a crucial component.

The MEA budget has placed a key emphasis on India’s ‘Neighbourhood First’ policy. Rs 4,320 crore – 64 per cent of the total scheme portfolio – has been earmarked for the country’s immediate neighbours for several initiatives like large infrastructure projects such as hydroelectric plants, power transmission lines, housing, roads, bridges and integrated check-posts.

Bhutan Retains Top Spot

Bhutan continues to be India’s largest foreign aid recipient, receiving Rs 2,150 crore in 2025-26. This is an increase from last year’s allocation of Rs 2,068 crore. India remains Bhutan’s primary development partner, with funding directed towards infrastructure, hydropower projects, and economic cooperation.

Maldives Boost Amid Diplomatic Reset

India’s allocation for the Maldives has increased from Rs 400 crore to Rs 600 crore. This comes at a time when Male is attempting to mend ties with New Delhi following tensions over President Mohamed Muizzu’s pro-China stance after his electoral win. 

In early 2024, India withdrew its military personnel from the Maldives. Now, with Maldivian Defence Minister Ghassan Maumoon visiting India earlier this month, efforts are underway to restore cooperation. 

Afghanistan’s Aid Reduced

Afghanistan has seen its aid allocation decrease from Rs 200 crore last year to Rs 100 crore in 2025-26. This is still a sharp decline from the Rs 207 crore granted two years ago. India has been cautious in its dealings with the Taliban government, limiting its engagement to humanitarian aid and economic cooperation.

Earlier this year, senior diplomat Vikram Misri met with Taliban officials in Dubai, marking the highest-level contact since Kabul’s takeover. Discussions centred around trade and India’s interest in Iran’s Chabahar Port, which serves as a crucial alternative trade route bypassing Pakistan.

Despite these engagements, India has yet to officially recognise the Taliban government. 

Myanmar Sees Increased Aid

Myanmar’s allocation increased from Rs 250 crore in the 2024-25 budget to Rs 350 crore for 2025-26 amid ongoing turmoil in the country, where ethnic armed groups have taken control of vast territories, including areas bordering India’s northeastern states.

The Centre recently tightened the rules for the movement of people across the India-Myanmar border. The new rules restrict movement from 16 km under the free movement regime (FMR) to 10 km, on either side.

Other Key Allocations

India has maintained its allocation for Nepal at Rs 700 crore. The allocation for Sri Lanka saw an increase from Rs 245 crore to Rs 300 crore as the crisis-hit southern neighbour recovers from an economic meltdown.

Aid to Dhaka remains unchanged at Rs 120 crore amid a diplomatic rift between the two countries following former Bangladesh Prime Minister Sheikh Hasina’s ouster last year. Ms Hasina has been granted asylum in India, with the Muhammad Yunus-led government demanding her return.

Aid to African nations rose to Rs 225 crore from Rs 200 crore last year. The African Union joined the G20 in 2023 when India hosted the summit.

Latin America’s allocation has been increased from Rs 30 crore to Rs 60 crore. Last year, Union Minister of State for External Affairs Pabitra Margherita embarked on a nine-day official visit to Mexico, Grenada, Barbados, and Antigua and Barbuda, underscoring the deepening ties between India, Latin America and the Caribbean.

The allocation for Chabahar Port in Iran remains at Rs 100 crore. The port project serves as a vital trade route to Afghanistan and Central Asia.

Disaster Relief allocation saw a massive increase from Rs 10 crore in 2024-25 to Rs 64 crore this year. India has consistently been one of the first to respond to global disaster relief initiatives. India was among the early responders when Turkey witnessed devastating earthquakes in 2023. India also sent relief to flood-hit countries like Laos and Vietnam in 2024. 

Beyond direct financial aid, India is also expanding its soft power outreach. Indian Council for Cultural Relations (ICCR) has received Rs 351 crore, up from Rs 331 crore last year. Support for International Training Programs stands at Rs 1,247 crore.

Male:

Maldives President Mohamed Muizzu has denied having an “India Out” agenda, asserting that the island nation had a “serious problem” with the presence of foreign military on its soil.

Mohamed Muizzu, who is in the US to attend the 79th Session of the United Nations General Assembly, made the remarks on Thursday while responding to a question at Princeton University’s “Dean’s Leadership Series”.

“We have never been against any one country at any point. It’s not India Out. Maldives faced a serious problem with foreign military presence on this soil,” Maldivian news portal adhadhu.com quoted him as saying.

“The people of Maldives do not want a single foreign soldier in the country,” Mohamed Muizzu said.

The ties between India and the Maldives came under severe strain since November last year when Mohamed Muizzu, known for his pro-China leanings, took charge as Maldivian president.

Mohamed Muizzu had asked India to withdraw nearly 90 Indian military personnel operating three aviation platforms gifted by the country. India withdrew its military personnel by May 10 and replaced them with civilian personnel to operate a Dornier aircraft and two helicopters.

Mohamed Muizzu further stressed he had taken action against deputy ministers for insulting Prime Minister Narendra Modi on social media.

“No one should say such a thing. I took action against it. I will not accept insulting anyone like that, whether he is a leader or an ordinary person. Every human being has a reputation,” the report quoted him as saying.

Earlier this year, deputy ministers in Maldives’ youth ministry were suspended for derogatory social media posts against Prime Minister Modi following a backlash, with New Delhi strongly raising the matter with Male. The deputy ministers criticised Modi for his post on ‘X’ following his visit to Lakshadweep, inferring that it was an attempt to project the Union Territory as an alternative tourist destination to the Maldives.

Prime Minister Modi was in Lakshadweep on January 2 and 3 to inaugurate several projects.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Male:

In a goodwill gesture, India on Thursday said it has decided to rollover a USD 50 million Treasury Bill for an additional year upon the request of the Maldives government.

“At the request of the Government of Maldives, the State Bank of India (SBI) has subscribed the USD 50 mn Government Treasury Bill (T-bills) issued by the Ministry of Finance of Maldives, for a period of one more year from the date of maturity of the previous subscription, September 19, 2024,” the High Commission of India in Maldives said in a press release.

SBI bought the Treasury Bill under an agreement signed by the previous government. SBI has bought a total of USD 200 million in Treasury Bills for USD 50 million for each one, the Adhadhu news portal reported.

The Treasury Bills were previously rolled over annually with interest paid by the Indian government. However, the government of President Mohamed Muizzu repaid USD 50 million in January this year, it said.

Maldives had requested the Indian government to extend the deadline for repayment of the remaining USD 150 million. India agreed to rollover USD 50 million in May and a second USD 50 million payment was due today.

“Sincere gratitude to External Affairs Minister @DrSJaishankar and the Government of #India for extending crucial budgetary support to the Maldives with the rollover of USD 50 million Treasury Bill. This generous gesture reflects the enduring bonds of friendship between #Maldives and #India,” Foreign Minister Moosa Zameer said in a post on X on Thursday.

Sincere gratitude to External Affairs Minister @DrSJaishankar and the Government of #India for extending crucial budgetary support to the Maldives with the rollover of USD 50 million Treasury Bill.

This generous gesture reflects the enduring bonds of friendship between…

— Moosa Zameer (@MoosaZameer) September 19, 2024

Earlier in May 2024, the SBI had similarly subscribed a USD 50 mn T-bills under the same mechanism, again on the request of the Government of Maldives.

In a statement, the Foreign Ministry Thursday thanked the “generous support that the Government of India has been providing to the Maldives in the form of budgetary support.” “This extension comes at a pivotal moment as the Government of Maldives is implementing a strong fiscal consolidation program to address the pressing economic challenges,” the ministry said.

The development comes days after Foreign Minister Zameer acknowledged that the Maldives-India ties witnessed rough patches in the initial days of President Mohamed Muizzu-led government but insisted that the two countries have resolved the “misunderstandings”.

India’s relationship with the Maldives came under strain since Mohamed Muizzu, known for his pro-China leanings, took charge as the President. Within hours of his oath, he had demanded the withdrawal of Indian military personnel manning three aviation platforms gifted by India to the Maldives. After talks between the two sides, the Indian military personnel were replaced by civilians.

Unlike his predecessors, who made the first port of call to New Delhi after assuming office, Mohamed Muizzu travelled to Turkiye first and to China for his first state visit in January. He visited New Delhi on June 9 to attend Prime Minister Modi’s swearing-in ceremony.

Mohamed Muizzu will travel to India on an official visit “very soon”, his spokesperson said last week.

The Maldivian government is also working to defer repayment of loans taken from other countries including China.

The Maldives owes much of its external debt to China and India. The government’s debt servicing commitments amount to USD 409 million this year, placing additional stress on its already limited foreign currency reserves.

Maldives reserves currently stand at USD 444 million, with usable reserves at USD 61 million.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Male, Maldives:

External Affairs Minister S Jaishankar met Maldivian President Mohamed Muizzu here on Saturday and emphasised New Delhi’s commitment to deepen India-Maldives ties for the benefit of the people in the two countries and the region.

Jaishankar is on a three-day official visit to Maldives to reset the bilateral relationship, the first high-level trip from India after the archipelago nation’s pro-China president Muizzu assumed office last year.

“Privileged to call on President Dr Mohamed Muizzu. Conveyed greetings of PM @NarendraModi. Committed to deepening India-Maldives ties for the benefit of our people and the region,” Jaishankar posted on X along with a photograph of the meeting.

Jaishankar’s trip to the Maldives comes weeks after President Muizzu’s visit to India in June to attend the swearing-in ceremony of Prime Minister Narendra Modi’s government.

Earlier, Jaishankar met Maldivian Defence Minister Ghassan Maumoon and discussed bilateral security cooperation and the “shared interest” in maintaining peace and stability in the region, amidst China’s growing presence in the archipelago nation.

The ties between India and the Maldives came under severe strain since Muizzu, known for his pro-China leanings, took charge of the top office in November 2023.

Within hours of his oath, he had demanded the withdrawal of Indian military personnel manning three aviation platforms in the Maldives.

Subsequently, the Indian military personnel were replaced by civilians by May 10, the mutually agreed date.

This is the first official visit of Jaishankar to the Maldives since assuming office for a second term in June 2024. His previous visit was in January 2023.

Jaishankar’s three-day visit till August 11 comes at the invitation of his counterpart, the Minister of Foreign Affairs of Maldives Moosa Zameer.

In a statement ahead of his visit, the Ministry of External Affairs (MEA) said, “Maldives is India’s key maritime neighbour and an important partner in India’s ‘Neighbourhood First’ policy and our Vision ‘SAGAR’, that is, Security and Growth for All in the Region.” “The visit is aimed at strengthening the close partnership between the two countries and to explore avenues to enhance the bilateral relationship further,” the MEA statement added.

The Maldives is one of India’s key maritime neighbours in the Indian Ocean region and the overall bilateral ties, including in the areas of defence and security, witnessed an upward trajectory under the previous government in Male.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Male:

India is supporting 65 community development projects worth USD 23 million in the Maldives and steady progress has been achieved in implementing them, the Indian mission said on Thursday.

Of the 47 High Impact Community Development Projects in Maldives under grant aid by the Government of India approved till November 2023, as many as eight are already completed.

Notwithstanding the diplomatic row in recent times, India is supporting 65 community development projects worth MVR 360 million (USD 23 million) in the archipelagic nation, the High Commission of India said.

“While the grant is being provided by the Indian government, the projects are selected in order of priority as set by the Maldivian government. Implementation of these projects are also undertaken by institutions appointed by the Maldives government,” news portal Edition.mv said.

“Happy to note steady progress of Greater Male Connectivity Project, being implemented with Indian grant and concessional credit @USD 500 million. GMCP is a transformational infrastructure project which will stimulate economic growth and improve ease of living in Maldives.” The Indian High Commission posted on its official X handle on Wednesday.

The post on X came after Maldives’ Ministry of Foreign Affairs and the High Commission of India in Maldives held a two-day meeting to review the ongoing projects when it was discussed that even as eight projects are completed, the rest of the High Impact Community Development Projects (HICDPs) remain at different levels of progress.

These include a wide variety of projects spread throughout the atolls. Some initiatives included are the establishment of fish processing plants, drug detoxification centres, cultural centres, youth centres and sports complexes, Edition.mv reported.

Ambassador at Large Ahmed Naseer and High Commissioner of India to Maldives Munu Mahawar co-chaired the meeting, which saw the participation of senior government officials and other stakeholders.

The Memorandum of Understanding for this Indian Grant Assistance on implementation of these High Impact Community Development Projects through local institutions was initially signed between India and Maldives on March 17, 2019, it said, adding, “At the time, the MoU outlined a grant totalling USD 5.5 million (MVR 85 million).” In 2021, this MoU was renewed, increasing the grant to (USD 10 million) MVR 155 million; in January 2023, yet another MoU for grant assistance was signed, this time with a USD 6.5 million (MVR 100 million) increment, bringing the HICDPs grant from India to Maldives to a total of USD 16.5 million (MVR 255 million).

Additionally, there are also cash grant projects worth over USD 7 million (MVR 107 million), for multiple projects, it added.

India-Maldives relations started going south when within hours of his oath-taking in November 2023, President Mohamed Muizzu demanded India to withdraw its military personnel manning three aviation platforms from his country. The last of the military personnel were repatriated earlier this month and replaced by civilian personnel from India.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Male:

The Maldives military still does not have pilots capable of operating three aircraft donated by India, Defence Minister Ghassan Maumoon has acknowledged, days after 76 Indian defence personnel left the island nation at the instance of Maldives President Mohamed Muizzu.

Ghassan Maumoon made the remarks at a press conference held at the President’s Office here on Saturday to brief the media about the withdrawal of Indian soldiers stationed in the Maldives to operate two helicopters and a Dornier aircraft and their replacement with civilians from India.

Responding to a question from a journalist, Ghassan Maumoon said there were no Maldivian soldiers with the Maldives National Defense Force (MNDF) who can operate the three aircraft donated by the Indian military despite some soldiers who began training to fly them under agreements formed by previous governments.

“As it was a training that required passing various stages, our soldiers had not reached completion due to various reasons. Therefore, there aren’t any people in our force at the moment who are licensed or fully operational to fly the two helicopters and Dornier aircraft,” Ghassan Maumoon was quoted as saying by Adhadhu.com news portal.

The relations between the two countries came under severe strain after Muizzu, a pro-China leader, insisted on the withdrawal of all Indian military personnel operating the three aviation platforms in the island nation by May 10. India has already withdrawn 76 military personnel.

However, the Maldives government has no intention of removing the doctors from India at Senahiya military hospital, a Maldivian media report said.

Contrary to Ghassan Maumoon ‘s remarks, when the current administration’s senior officials were in the opposition during the past five years, they criticised the previous government and claimed that there were capable pilots in the MNDF, the Adhadhu.com report noted.

Training Maldivians was the main reason for the arrival of Indian soldiers with the helicopters donated during former presidents Mohamed Nasheed and Abdulla Yameen’s governments and the Dornier aircraft brought during former President Ibrahim Mohamed Solih’s government, it said.

Despite the failure to complete the training to date, Foreign Minister Zameer said Saturday that the agreement to replace the Indian soldiers with civilians also included provisions for training local pilots.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Mohamed Saeed, Maldives’ Minister of Economic Development and Trade, met with Munu Mahawar, Indian High Commissioner to the archipelago nation.
| Photo Credit: X/@MoEDmv

India on May 1 said it looked forward to strengthening bilateral economic cooperation with the Maldives as its envoy held discussions with a senior minister of the archipelagic nation.

Mohamed Saeed, Maldives’ Minister of Economic Development and Trade, met with Munu Mahawar, Indian High Commissioner to the archipelago nation on Tuesday.

The meeting comes weeks after India allowed the export of certain quantities of essential commodities for the year 2024-25 at the request of the Maldivian government and ahead of the May 10 deadline imposed by President Mohamed Muizzu for the complete repatriation of 88 Indian military personnel from his country.

OPINION | Stability in Maldives: On the election results and India ties 

“Minister @em_saeed met with Indian High Commissioner to Maldives, H. E. Munu Mahawar, and discussed potential areas for trade & economic cooperation. @HCIMaldives,” posted Maldives’ Ministry of Economic Development and Trade from its official X handle along with photos of the meeting.

Soon after, the Indian High Commission responded: “We look forward to continued engagements with @MoEDmv for further enhancing India-Maldives economic cooperation.”

Earlier on April 5, displaying a strong commitment to supporting the human-centric development in the archipelagic nation, India said the request to allow export of certain quantities of essential commodities for the year 2024-25 was being done “under a unique bilateral mechanism” under which the quotas for each of these items have been revised upwards.

There was also an increase of 5 per cent in the quotas for eggs, potatoes, onions, sugar, rice, wheat flour and dal (pulses) and the approved quantities were the highest since this arrangement came into effect in 1981.

The 1981 India and Maldives trade agreement provides for the export of essential commodities. According to the records from the Indian High Commission, growing from modest beginnings, India-Maldives bilateral trade crossed the $300 million mark for the first time in 2021, which further crossed the $500 million mark in 2022.

“India emerged as Maldives’ 2nd largest trade partner in 2022 and the largest in 2023. Indian imports from the Maldives primarily comprise scrap metals while Indian exports to the Maldives include a variety of engineering and industrial products like drugs and pharmaceuticals, radar apparatus, rock boulders, aggregates, cement and agricultural produce such as rice, spices, fruits, vegetables and poultry produce etc,” it said.

The April 5 announcement also said that the quota for river sand and stone aggregates, crucial items for the booming construction industry in the Maldives, has been increased by 25% to 10,00,000 MT each.

Two persons sustained injuries during an altercation between a group of Maldivians and Indians, after which a Maldivian was detained, according to a media report on Tuesday.

The fight between the two groups took place near Central Park in Hulhumale, about 7 km northeast of Male, at around 9:00 pm on Monday, news portal Adhadhu.com reported.

The detained suspect is a Maldivian, the news portal quoted the police as saying but it did not mention who the injured were.

The two people who sustained serious injuries were taken to Hulhumale Hospital. They were later released after treatment.

Police said the clashes broke out between a group of Maldivians and Indians inside the park and that further investigations were underway.

Beijing:

China said on Monday it would seek to strengthen ties with the Maldives, after pro-Beijing President Mohamed Muizzu’s party won control of parliament in an election landslide. “China is willing to work with the Maldives to maintain traditional friendship (and) expand exchanges and cooperation in various fields,” foreign ministry spokesperson Wang Wenbin said.

Beijing, he said, aimed to “continuously deepen the China-Maldives comprehensive strategic cooperative partnership” as well as “accelerate construction of a community with a shared future for China and the Maldives, and better benefit the two peoples.”

“We congratulate the Maldives on successfully holding its parliamentary election and fully respect the choice made by the Maldivian people,” Wang said.

Provisional results from the Elections Commission of Maldives show Muizzu’s People’s National Congress (PNC) had secured more than two-thirds in the 93-member parliament.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)