India’s ‘Neighborhood First’ in Action: $50M Aid Extended to Maldives

The Maldives has extended heartfelt gratitude to India for offering a $50 million Government Treasury Bill, a timely financial measure that supports the island nation’s fiscal reform efforts and reinforces the two nations’ strong bilateral ties.

Maldivian Foreign Minister Expresses Gratitude to India

Maldivian Foreign Minister Abdulla Khaleel publicly thanked India’s External Affairs Minister Dr. S. Jaishankar and the Indian government for their continued financial support.

“This timely assistance reflects the close bonds of friendship between the Maldives & India and will support the government’s ongoing efforts to implement fiscal reforms for economic resilience,” Khaleel posted on social media platform X.

State Bank of India Rolls Over $50 Million Treasury Bill

On the request of the Government of Maldives, the State Bank of India (SBI) has once again subscribed to a $50 million Government Treasury Bill, issued by the Maldivian Ministry of Finance. This rollover is part of an ongoing, interest-free, government-to-government financial support mechanism initiated by India since March 2019.

According to a statement by the High Commission of India in Maldives, the subscription of these Treasury Bills has become a unique support mechanism under emergency financial assistance to the Maldives.

Also Read: May 12, 2008: Remembering China’s Deadliest Earthquake in Sichuan

India Reaffirms Commitment to ‘Neighbourhood First’ & Vision MAHASAGAR

India reiterated its dedication to strengthening regional partnerships through its ‘Neighbourhood First’ policy and Vision MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions), which emphasizes maritime security and economic collaboration.

The Indian High Commission noted that this financial aid is part of India’s broader assistance package to the Maldives, which includes a special export quota for essential commodities.

India’s Budget Allocation for Foreign Aid Sees Increase

In the Union Budget 2025–26, India increased its foreign aid allocation to ₹5,483 crore, up from ₹4,883 crore in the previous year. Notably, the Maldives received the largest aid increase, from ₹470 crore in the revised 2024–25 budget to ₹600 crore in 2025–26.

Strengthening India–Maldives Relations Through Economic Partnership

During a recent bilateral meeting, EAM S. Jaishankar had reiterated that the Maldives remains a “concrete expression” of India’s Neighbourhood First strategy. He emphasized India’s consistent role as a “first responder” to Maldivian needs, particularly in times of economic and humanitarian challenges.

Maldivian Foreign Minister Khaleel also reaffirmed the government’s commitment to deepening the Comprehensive Economic and Maritime Security Partnership with India.