India boosts aid to the Maldives with a $92 million allocation
An Indian External Affairs Ministry spokesperson said India would remain 'an important partner in Maldives' development'.
The Indian government has decided to boost its aid to the Maldives to USD 92.89 million (MVR 1.4 billion) this year. This increase comes alongside an agreement to provide Indian civilians to operate a Dornier aircraft and two helicopters.
Initially, India had committed USD 72 million in free aid to the Maldives for this year. Following high-level discussions between Maldivian delegates and Indian officials in Delhi, which focused on the future management of the Dornier aircraft and two helicopters operated by India, the aid was increased by USD 20 million.
Indian External Affairs Ministry spokesperson Randhir Jaiswal told reporters on Thursday that the amount has been increased to MVR 770.9 million from MVR 600 million. He indicated that the number is still likely to increase as things progress.
Randhir said India would remain "an important partner in Maldives' development".
“The new figure will also be reviewed, as more details are available, and as things progress, and things become more clear,” Randhir told reporters.
After talks between India and Maldives, the two sides agreed to withdraw the first batch of Indian troops from three areas of Maldives by March 10 and the other two areas by May 10. It was also agreed that the three aircrafts provided by India would be operated by Indian civilians.
Randhir said that while India has started withdrawing its troops from Maldives, the aircrafts will be flown by skilled Indian professionals.
"I want to say that the current people will be replaced by capable Indian technical people”, the spokesman said.
'Debt problem is heavy for Maldives'
On Wednesday, the International Monetary Fund (IMF) warned of a possible external and total debt crisis.
The economy expanded by 13.9% in 2022 after the Covid-29 pandemic. The economy was expected to grow by 4.4% last year (the final figures for 2023's economic growth haven't been released yet). The IMF also forecasts tourist arrivals to increase this year and the economy to grow by 5.2%.
The IMF noted that Maldives' current account deficit remains high while fuel prices as well as import demand keeps climbing.
