The Maldivian government estimates receiving MVR 1.6 billion from India in foreign aid for 2025, amounting to 72% of its total international aid. This figure is part of a projected MVR 2.25 billion budget for foreign grants. Additionally, aid from China and other nations is anticipated, reflecting the Maldives’ reliance on international support for economic growth.

The government of Maldives anticipates receiving MVR 1.6 billion (equivalent to approximately $104 million) in foreign aid from India in 2025, a figure that accounts for 72% of the total foreign aid projected for the year. This estimate was presented in the proposed State Budget 2025, which was submitted to Parliament on October 31, 2024. In the same budget, the administration led by President Mohamed Muizzu has forecast a total of MVR 2.25 billion as international grant assistance. In addition to India’s contribution, China is expected to provide MVR 502 million, representing 22% of the projected aid. The Maldivian government also anticipates receiving free aid from other nations including Japan, Pakistan, Saudi Arabia, and the Netherlands, along with approximately MVR 336 million from various international organizations. This announcement reflects India’s ongoing commitment to supporting the Maldives. Recently, during President Muizzu’s state visit to India, New Delhi pledged an additional $400 million in financial assistance to the Maldivian government. Furthermore, India had earlier provided substantial financial aid, including the provision of a $750 million currency swap arrangement and the rollover of Treasury Bills amounting to $100 million, extending vital support to the Maldivian economy in recent months.

India and the Maldives have maintained a close relationship over the years, marked by significant financial aid and diplomatic ties. This relationship has strengthened under President Mohamed Muizzu’s administration, which is focusing on enhancing economic cooperation. The anticipated foreign aid not only reflects India’s role as a key partner but also indicates a strategic shift towards reinforcing alliances within the region, particularly in the face of other competing influences, such as China. The proposed budget underscores the Maldives’ reliance on foreign aid to support its development efforts and economic stability.

In conclusion, the Maldivian government’s projection of receiving MVR 1.6 billion in foreign aid from India in 2025 underscores the crucial role of international support in the nation’s economic strategy. With India contributing a significant majority of the total aid projected, the collaboration between these two countries is poised to strengthen further, fostering economic development and regional stability.

Original Source: www.thehindu.com

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