MALÉ, Maldives – India has allocated approximately $60 million (equivalent to 550 crore Indian Rupees) in aid to the Maldives for its 2026-2027 budget. This allocation, while positioning the Maldives as India’s second-largest aid recipient, marks a decrease from the previous year’s provision.

The sum of 550 crore Indian Rupees was included in India’s projected budget, which was recently presented to its Parliament. In comparison, the 2025-2026 budget had allocated 600 crore Indian Rupees, or approximately $69 million, to the island nation.

Despite the reduction, the Maldives remains the second-largest beneficiary of Indian aid. Bhutan is set to receive the largest share, with an allocation of $250 million.

Economic Context of Aid Reduction

The decrease in aid coincides with recent economic challenges faced by India. These include a weakening of the Indian Rupee and the imposition of significant tariffs by the United States on Indian exports, both of which have impacted the Indian economy.

Ongoing Development Projects

India continues to implement several multi-million dollar development projects across the Maldives, reflecting ongoing bilateral cooperation despite the adjustment in aid figures.