India, under its ‘neighborhood first’ policy, will be allocating the highest aid to Bhutan in its external aid portfolio in the Union Budget for 2024-25.
In contrast, the outlay to Maldives observes a sharp decline from INR 7 billion (USD 84 million) to INR 4 million (USD 48 million). For Bhutan, India has allocated INR 21 billion (USD 347 million) in development aid.
The reason for this cut, according to a few Indian media outlets, is due to the weakened ties between India and the Maldives, especially after Dr. Mohamed Muizzu, rumored to have pro-China leanings, became Maldives President in November 2023.
However, relations between the two countries, more recently, appear to be on a positive trajectory as President Muizzu was among the top invitees to Prime Minister Narendra Modi’s swearing-in ceremony, as he was elected for the third consecutive term, on June 9, 2024.
Besides President Muizzu, Minister of Foreign Affairs Moosa Zameer has been to India to seek cooperative options and discuss further strengthening of ties. The Indian government has also promised to remain a vital ally in Maldives’ socio-economic development.