India Reduces Grant Aid to Maldives

India has pledged to give less free aid to the Maldives this year than it did last year.

India's Central Government published its annual government budget today, and effective with the beginning of India's fiscal year in March, India set aside 2.5 billion Indian Rupees (USD$ 34 million) as grant aid to the Maldives. In 2020, India had set aside 3.5 billion Indian Rupees for the beginning of that fiscal year.

However, the Maldives did not receive 3.5 billion Indian Rupees in grant aid from India in 2020. Its budget shows that the amount of free aid to the Maldives had been reduced to 1.75 Indian Rupees. It is unclear whether the Maldives had received this much aid from India.

Bhutan will receive the largest amount of free aid from India, which has set aside 20 billion Indian Rupees. 8 billion Rupees are in the form of loans. India regularly provides such aid to Bhutan.

Under the pretext of training the Bhutanese military, India has maintained a military presence in Bhutan for the last half-century. India also interferes heavily in Bhutan's internal affairs.

In addition to Bhutan, India has pledged large amounts of aid to Nepal, the Seychelles, and Mauritius.