Nine months ago, the relationship between India and the Maldives, two neighboring nations, faced a turbulent period. A fierce diplomatic row erupted following Prime Minister Narendra Modi’s visit to the Lakshadweep islands and the appointment of Mohamed Muizzu, perceived as ‘pro-China’, as the President of Maldives. However, recent developments suggest a significant shift in the dynamic between the two nations.
External Affairs Minister S Jaishankar’s recent visit to Maldives has been hailed as a turning point, with leaders on both sides describing the ties as the “strongest” and “modern” they have ever been. Mohamed Muizzu, the Maldivian President, extended “heartfelt congratulations” to India on its Independence Day, further solidifying the improved relationship. Prime Minister Modi reciprocated the sentiment, reiterating India’s commitment to the Maldives as a “valued friend” and emphasizing their shared goals for the benefit of both nations.
The tensions between the two countries originated from a number of factors, including the perceived threat of Indian tourists being diverted from Maldives to Lakshadweep, which was promoted by PM Modi as a new tourist destination. Tourism from India constitutes a significant portion of the Maldivian economy, and Maldivian MPs had expressed strong disapproval of PM Modi’s initiative. This led to a public outcry in India, with the hashtag #boycottMaldives trending on social media. The situation escalated further when the Maldivian President requested the withdrawal of Indian troops, fueling further tensions. At the same time, President Muizzu announced agreements with the Chinese government and a move towards reducing dependence on India for imported goods, further straining relations. Consequently, India’s position in the Maldivian tourism market slipped to sixth place, replaced by China at the top.
However, a notable shift in approach is evident in recent months. The Maldives has been actively working to revive tourism from India, with the Ministry of Tourism aiming to position India among the top three tourist arrival countries by year-end. This effort includes roadshows in major Indian cities and plans for an investment forum to attract Indian investors. The Maldivian government is also actively pursuing increased flight connectivity between the two nations.
During Jaishankar’s visit, India and the Maldives signed several significant agreements, signaling a renewed commitment to economic collaboration. These include a Memorandum of Understanding (MoU) with NIPI International Payments Limited to advance e-commerce in the Maldives, a renewal of the agreement for training Maldivian civil service employees in India, and the inauguration of a water and sewerage network project in 28 Maldivian islands, funded by India’s Line of Credit. The joint statement issued following the visit also highlighted the commitment of both countries to strengthening bilateral relations and working together to address shared security concerns, including terrorism, extremism, and drug-related issues.
Further demonstrating their commitment to economic cooperation, the Maldives has proposed establishing a Free Trade Agreement (FTA) with India. This proposal was presented during official discussions between the Maldivian Foreign Minister and S Jaishankar. Additionally, India has pledged to permanently deliver perishable goods to Addu City starting in July, a move aimed at strengthening trade ties and promoting economic development in the Maldives. Furthermore, India has approved a $150 million debt deferral for the Maldives, signifying their willingness to support the nation’s financial stability.
This renewed cooperation is reflected in the positive statements made by leaders on both sides. Minister Jaishankar has described the India-Maldives relationship as “modern”, while Maldivian Foreign Minister Moosa Zameer has declared this period as the “strongest” in bilateral relations. President Muizzu has also expressed gratitude for India’s consistent support and expressed optimism for the future of Maldives-India cooperation.
The recent developments indicate a significant shift in the India-Maldives relationship. While past tensions have been acknowledged, the focus now appears to be on strengthening ties through economic cooperation, tourism promotion, and enhanced security partnerships. This positive trajectory suggests a promising future for the relationship between these two neighboring nations.
