India has allocated Rs 550 crore (approximately USD 66 million) in financial assistance to the Maldives under its 2026–27 Union Budget, underscoring Malé’s position as a key partner within New Delhi’s neighbourhood diplomacy and Indian Ocean strategy.
The allocation is detailed in the latest Ministry of External Affairs Demand for Grants, presented to Parliament as part of the Union Budget for the upcoming fiscal year. The Maldives remains among the leading recipients of India’s external assistance, ranking ahead of several regional partners and reflecting the depth and continuity of bilateral engagement.
The Union Budget was presented on Sunday by Minister of Finance Nirmala Sitharaman, marking a historic milestone as the first Union Budget to be presented on a Sunday since India’s independence. The 2026–27 budget is also the ninth consecutive budget presented by Sitharaman, signalling consistency in India’s fiscal planning and external policy direction.
India’s Rs 550 crore (USD 66 million) allocation to the Maldives falls under the “Aid to Countries” central sector scheme of the Ministry of External Affairs. The funding is intended to support development cooperation, economic resilience, and capacity-building initiatives, while reinforcing long-standing diplomatic, institutional, and people-to-people ties.
Indian assistance to the Maldives has historically supported infrastructure development, connectivity projects, healthcare, education, and targeted budgetary support, helping to stabilise the economy during periods of fiscal pressure. The sustained allocation highlights New Delhi’s view of the Maldives as a strategically significant partner in the Indian Ocean region.
Within South Asia, only a small number of countries receive higher levels of direct Indian budgetary assistance, underlining the Maldives’ elevated standing in India’s external engagement framework. The allocation reflects India’s broader ambition to position itself as a reliable development partner to its immediate neighbours.
The continued prominence of the Maldives in India’s external assistance framework also reflects the constructive and forward-looking relationship between President Dr Mohamed Muizzu and Indian Prime Minister Narendra Modi. Both leaders have emphasised mutual respect, sovereign equality, and pragmatic cooperation, setting a stable foundation for bilateral engagement. The Rs 550 crore (USD 66 million) allocation reinforces this shared commitment to strengthening Maldives–India relations through development partnership, regional stability, and sustained diplomatic dialogue, signalling confidence in the future trajectory of ties between Malé and New Delhi.
