Myanmar Debt: Myanmar is currently facing one of the most serious economic crises in its modern history. The ongoing civil war, inflation, international sanctions and recurring natural disasters have plunged the country into deep financial crisis. Amidst this turmoil, let us know how much money India has lent to Myanmar so far.

How much money did India give?

The total development assistance portfolio from India to Myanmar by 2026 is more than $1.75 billion. This includes both repayable loans and non-repayable grants. A large part of this assistance comes in the form of concessional loans. It is officially known as Lines of Credit.

Let us tell you that India has given a soft loan of about 745 million dollars to Myanmar. These loans are usually long term, low interest and are aimed at promoting infrastructure and connectivity projects. Not only this but India also gives a big grant. In the Union Budget 2025-26 alone, ₹350 crore was allocated as direct assistance to Myanmar. There is no need to repay them.

Where was India’s money used in Myanmar?

India’s financial assistance to Myanmar is mainly directed towards strategic and development projects. The most important among these is the Kaladan Multi Modal Transit Transport Project. The objective of this project is to connect North-East of India with Sittwe Port of Myanmar. This will improve trade access to Southeast Asia. Another big initiative is the India Myanmar Thailand Trilateral Highway.

Not only this but Indian loans have also supported the Yangon Mandalay Railway Upgrade. Additionally, the Thate Chaung Hydroelectric Project is a 100 MW energy initiative funded by a loan of approximately $60 million.

Is Myanmar paying its debt to India?

At present Myanmar is struggling to repay its external debt. In 2022, Myanmar’s central bank ordered the suspension of payments on foreign loans to save dwindling foreign exchange reserves. This is the reason why there has been a delay in payment on Indian Lines of Credit.

For this reason India has adopted another path. Myanmar has formally requested its creditors with India to change and renegotiate the loan repayment terms. India has shown willingness to participate in these discussions keeping in mind long-term regional stability. Along with this, India has already given debt relief to Myanmar under the G-20 Debt Service Suspension Initiative. Not only this but India has converted some aid into grants.

Also read: The British were the first to build this building in India, know its history and today’s status.

Foreign Secretary Vikram Misri was questioned on Friday whether the issue of China was raised in the meeting of Prime Minister Narendra Modi and Maldives President Mohammad Mujju? In response to this, he said that Maldives has expressed his commitment to cooperation with India, describing the issues related to security as important.

Maldives’ security is necessary to cooperate with India
Vikram Misri said that President Mujju clarified that Maldives takes security related matters seriously and cooperation on it will continue between the two countries. He informed that there is constant communication and contact between the security agencies of India and Maldives.

VIDEO | Maldives: when asked if China featured in the modi-muizzu talks, mea foreign secretary vikram misri said, “The President Expressed His Commitment to the Maldives ATATACHES TO Security-Related issues and the Commitment of Both Sides to Continue Working… pic.twitter.com/y9pp2Pelif

– Press Trust of India (@Pti_News) July 25, 2025

Discussion on trade, defense and maritime security
Prime Minister Modi held extensive conversations with Mujju during a two -day visit to Maldives. The two leaders insisted on further deepening the partnership in important areas like trade, defense and maritime security.

India-Maldives will continue to work on shared security interests
Vikram Egyptian said that India will continue to work with Maldives on all the subjects that can affect regional security. There is a constant and higher dialogue between security agencies.

40% relief in loan payment
Vikram Egyptian informed that under the important agreement reached after the meeting, the debt that Maldives has to pay for India every year will decrease by 40 percent.

“Our relations are older than history” – PM Modi
PM Modi said in the press briefing that the relations between India and Maldives are as deep as the sea and older than history. He said, “Friendship always comes to us first.” He also said that the friendship between India and Maldives will remain bright and clear in every situation.

Line of credit and trade agreement of ₹ 4,850 crore
India announced financial assistance of ₹ 4,850 crore to Maldives. Apart from this, it has been agreed to finalize the free trade agreement between the two countries soon.