In the first week of January, Prime Minister Modi visited Lakshadweep and shared photos on social media, encouraging people to visit. In response, three ministers from Lakshadweep made disrespectful comments on social media, unfavorably comparing the region to the Maldives. This led to widespread support for Lakshadweep from Indian politicians, actors, and the public on social media. Easymytrip founder cancelled all Maldives-related bookings. The Maldives government suspended three ministers over derogatory remarks against Indians and Prime Minister Narendra Modi's Lakshadweep visit. Amidst the tension, the "Boycott India" hashtag began trending on the internet.
Meanwhile, India has given a big shock to the Maldives, its neighboring country, in the budget for 2024-2025. Compared to last year, India has allocated nearly 171 crore rupees less for the Maldives in the budget, instead of increasing the allocation for the Maldives in the budget for the past two years. According to Finance Minister Nirmala Sitharaman, a budget estimate of 600 crore rupees has been allocated for the Maldives in 2024-25. In reality, the amount allocated in the budget for any country is spent on its imports and exports. In addition to commercial transactions, this amount is also spent on the exchange of military technology with other countries. The number of tourists traveling from India to the Maldives has already decreased.
The budget was increasing every year, but this year it has decreased. What's interesting is that in 2023-24, 771 crore rupees were allocated for the Maldives in the budget. This was the revised amount as the government had increased it from 771 crore. Whereas in February 2023, the estimated amount presented was 400 crore rupees. Furthermore, looking back, in the budget of 2022-23, the Indian government had allocated 183 crore rupees to strengthen the relationship with the Maldives. Therefore, the decrease in the continuously increasing budget for the Maldives this time indicates a weakening relationship with India.
Other countries Budget
Nepal and Afghanistan also saw budgetary increases. Nepal received an additional Rs 100 crore ($1.2 million), bringing its total allocation to Rs 650 crore ($8.1 million), while Afghanistan's revised allocation rose by Rs 20 crore ($0.25 million) to Rs 220 crore ($2.7 million). Bhutan remains the top recipient of Indian foreign assistance, with a substantial allocation of Rs 2398.97 crore ($297.8 million). This reflects the close relationship between the two countries and India's role as a key development partner in the region.
Beyond immediate neighbors, Bangladesh received Rs 130 crore ($1.6 million), Mongolia Rs 5 crore ($0.6 million), Mauritius Rs 330 crore ($4.1 million), Seychelles Rs 9.91 crore ($0.12 million), and Myanmar Rs 370 crore ($4.6 million). These allocations highlight India's broader engagement in supporting the socio-economic development of regional nations. A notable allocation of Rs 100 crore ($1.2 million) was earmarked for the Chabahar port project in Iran, reaffirming India's strategic interest in enhancing regional connectivity and trade. This project serves as a key gateway for trade and commerce in the region.