India Allocates ₹770 Cr to Maldives Despite Diplomatic Tensions – Boost for GMCP Project

India Allocates ₹770 Cr to Maldives Despite Diplomatic Tensions – Boost for GMCP Project

India’s Increased Development Assistance:

Recent information reveals that the Indian government has allotted ₹770 crore to the Maldives, despite existing diplomatic tensions and a diplomatic boycott.

Notably, India has escalated its development assistance to the Maldives by 50%, raising the budget from Rs 400 crore to Rs 600 crore in the interim Budget for the current fiscal year, as per the Ministry of External Affairs (MEA) demand for grants.

Budgetary Adjustments and Revised Estimates:

Although India had initially allocated Rs 400 crore in the previous year, the revised estimates revealed that the actual spending amounted to Rs 770 crore.

This implies a notable increase in the development assistance provided to the Maldives, reflecting a 22% surge compared to the allocated budget.

Focus on the Greater Malé Connectivity Project (GMCP):

The augmented allocation of Rs 600 crore for the current fiscal year is specifically earmarked for the Greater Malé Connectivity Project (GMCP), a significant infrastructure initiative in the Maldives.

This substantial financial support underscores India’s commitment to advancing key projects in the region.

Diplomatic Dynamics and Controversies:

Interestingly, this financial commitment occurs amid evolving diplomatic dynamics between India and the Maldives.

Maldivian President Muizzu, despite winning elections on an anti-India platform, has shown a growing alignment with China.

Recent controversies, leading to the dismissal of three government ministers for racist comments against Indians, highlight the complexities in the bilateral relationship.

Timing and Turbulence:

The timing of India’s financial support becomes particularly noteworthy given the recent incident sparked by Indian Prime Minister Narendra Modi’s promotion of tourism in the Lakshadweep islands.

This move reportedly irked some Maldivian officials, contributing to the ongoing turbulence in the diplomatic relations between the two nations.


In conclusion, India’s allocation of ₹770 crore to the Maldives, despite diplomatic challenges, reflects a continued commitment to fostering development and infrastructure projects in the region.

The focus on the GMCP project and the complexities in diplomatic relations underscore the multifaceted nature of India’s engagement with the Maldives.

TDPel Media

This article was published on TDPel Media. Thanks for reading!

Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn

Advertisement: Download Vital Signs App (VS App)