India, amid regional instability, leverages its robust economic growth under Prime Minister Narendra Modi to extend financial aid and enhance its influence in neighboring countries, countering China's dominance.
India Strengthens Regional Influence Through Economic Support
India Strengthens Regional Influence Through Economic Support
Prime Minister Modi strategically uses growing economic power to extend aid, countering China's dominance in South Asia.
Prime Minister Narendra Modi of India is strategically harnessing the nation's economic growth to extend financial aid to neighboring countries and counter China's influence in the region. As political instability affects India’s neighboring countries, Modi's government employs economic support as a key instrument of influence. When Sri Lanka faced an economic crisis in 2022, India provided more than $4 billion in aid. Similarly, India's aid to Bhutan, which is embroiled in boundary disputes with China, doubled to $1 billion over five years. In Bangladesh, India funded infrastructure projects, which supported an autocratic leader aligned with India's interests until her removal in August.
The Maldives is the latest recipient of India's financial assistance. After campaigning on an "India Out" platform, President Mohamed Muizzu's stance shifted upon receiving $750 million in aid from India to alleviate fiscal challenges. “India is a key partner in our socio-economic and infrastructure development," said Muizzu alongside Modi.
India's economic growth rate of approximately 7 percent, as noted by the World Bank, surpasses that of neighboring nations struggling to regain pre-pandemic growth levels. This economic trajectory heightens its appeal as a partner for business and trade, offering lucrative opportunities despite bureaucratic complexities.
The Maldives is the latest recipient of India's financial assistance. After campaigning on an "India Out" platform, President Mohamed Muizzu's stance shifted upon receiving $750 million in aid from India to alleviate fiscal challenges. “India is a key partner in our socio-economic and infrastructure development," said Muizzu alongside Modi.
India's economic growth rate of approximately 7 percent, as noted by the World Bank, surpasses that of neighboring nations struggling to regain pre-pandemic growth levels. This economic trajectory heightens its appeal as a partner for business and trade, offering lucrative opportunities despite bureaucratic complexities.
