Strengthening Ties: India and Maldives Forge New Economic Partnerships
India-Maldives Relations Strengthened
During Prime Minister Narendra Modi's recent visit to Malé, President Mohamed Muizzu emphasized that India is the Maldives' "closest and most trusted partner."
Muizzu highlighted the significance of India's partnership, stating it is invaluable during a joint press conference with Modi.
He also announced the initiation of discussions for a free trade agreement, which he termed a "landmark initiative" aimed at enhancing economic collaboration between the two nations.
Recognizing India as a vital source of tourism for the Maldives, he mentioned ongoing efforts to improve direct flight services. Additionally, Muizzu outlined plans for cooperation in areas such as waste management, renewable energy, biodiversity, and water sanitation.
Modi revealed a substantial line of credit amounting to Rs 4,850 crore (approximately $560 million) for development initiatives in the Maldives. Furthermore, New Delhi has agreed to reduce the Maldives' annual debt repayment from $51 million to $29 million.
Modi expressed pride in being the "most trusted friend" of the Maldives and reiterated India's commitment to being the first responder during crises.
He stated that the Maldives is a crucial part of India's Neighbourhood First Policy and the MAHASAGAR vision, which stands for Mutual and Holistic Advancement for Security and Growth Across Regions.
"Regardless of the weather, our friendship will always shine bright," Modi remarked.
Both leaders discussed enhancing cooperation in various sectors, including trade, defense, maritime security, climate action, and health, as reported by the Ministry of External Affairs.
They also oversaw the signing of six memoranda of understanding, including agreements on digital public infrastructure and the implementation of Unified Payments Interface payments in the Maldives.
This partnership is strategically significant for India, especially in light of its geopolitical rivalry with China in the Indian Ocean region.
Improving Diplomatic Relations
Thaw in Relations
This visit marks Modi's first trip to the Maldives since diplomatic relations soured in January 2024, following derogatory remarks made by three deputy ministers regarding Modi's social media posts.
The posts depicted Modi snorkeling during a visit to Lakshadweep, prompting a backlash on social media. Maldivian minister Maryam Shiuna referred to Modi as a "clown" in a now-deleted post.
In response to the uproar, Shiuna and two other ministers were suspended on January 7.
Muizzu, who previously led an "India Out" campaign during former President Ibrahim Solih's administration, had expressed concerns over policies perceived as favorable to India.
Despite the diplomatic tensions, Muizzu asserted that the Maldives, though small, should not be bullied by any nation.
During the diplomatic spat, Muizzu made his first official visit to China in January 2024.
Typically, new Maldivian presidents visit India first after taking office. Muizzu initially sought a visit to New Delhi, which was reportedly declined.
Before his upcoming visit to India in October, Muizzu denied advocating for an "India Out" policy, clarifying that he only supported the removal of foreign military personnel as per his citizens' wishes.
His campaign in November 2023 prominently featured the removal of India's military presence from the Maldives.
India was the sole foreign power with military personnel stationed in the Maldives, overseeing radar stations and surveillance aircraft. Indian naval vessels also assisted in patrolling the Maldives' exclusive economic zone.
In May 2024, India announced the replacement of its military personnel with "competent Indian technical personnel" to operate aviation platforms in the Maldives.