India-Maldives tie moves towards normalcy
India and Maldives have re-forged their bilateral relationship – after hitting a rough patch. It may be recalled when Maldivian President Mohamed Muizzu came to power, he had supported an ‘India out’ campaign and also sought the removal of Indian troops from the Maldives, after his election. The troops were subsequently replaced with a civilian team.
However, the two countries have moved from ‘India out’ to ‘India in’ now. President Muizzu has visited India twice – first for PM Modi’s swearing in and, the second time, on a state visit in October 2024.
Prime Minister Narendra Modi’s visit as the guest of honour in the 60th Independence Day celebrations of the Maldives has set the tone for a renewed and stronger ties between the two nations.
“Landed in Male. Deeply touched by the gesture of President Muizzu to come to the airport to welcome me. I am confident that India-Maldives friendship will scale new heights of progress in the times to come,” said Modi, as soon as he reached the island.
India has also extended a Line of Credit (LoC) of Rs4,850 crore to the Maldives, which reduced its annual debt repayment obligations on the government of India-funded LoCs. Talks have also been initiated for India-Maldives Free Trade Agreement (FTA), besides paving the way for setting up UPI (Unified Payments Interface, a real-time payment system that allows for instant money transfers between bank accounts using mobile devices) in the Maldives, which could facilitate Indian tourists.
“We have held fruitful discussions, witnessed the exchange of four MoUs and three agreements in vital areas and announced the launch of FTA agreement,” informed President Muizzu. “Together, we have celebrated the 60th Independence day of the Maldives and launched a commemorative stamp”.
Meanwhile, Prime Minister Modi, who stayed in Kurumba Resort, met with leaders from different political parties in the Maldives, including former President Mohamed Nasheed. “Met former President Nasheed, who has been a strong advocate of India-Maldives friendship and spoke about how the Maldives will always be a valued pillar of our ‘Neighbourhood First’ policy,” said Modi.
Building bridges
“It is always a privilege to meet PM Modi,” said Nasheed. “We discussed the importance of helping Maldivian youth, the film industry and coral reef research, amongst other things”. India has been supporting the archipelago in infrastructure projects, the flagship item among them being the Great Male Connectivity Project, which will connect Male to three more islands. This is a 6.7 km long bridge in the open sea and nearly 61 per cent of this project has been accomplished.
“The funds that have been contributed by India from 2014 until now for the developmental assistance to the Maldives can be segregated into three or four areas,” remarked G. Balasubramanium, India’s high commissioner to the Maldives. “The first is the LoC that we have been issuing; the second is the credit given directly for the construction projects; while the third relates to the grants given for projects. A fourth may be added – which is capacity building”.
If they are to be quantified, it would amount to roughly $2 billion. India has been assisting Maldives’ projects over the past many years, including the Hanimaadhoo International Airport project. Both nations had also worked on the Vision Document, which was released during President Muizzu’s state visit to India in October 2024.
“India has helped the island nation in several community development projects,” Indian High Commissioner added. “We have constructed youth centres, courts for football and volleyball, as also outdoor gyms”.
Now, coinciding with the 60th Independence Day celebrations, Maldives has also inaugurated a new terminal building at Velana airport. Apart from expanding the capacity, there is also talk of increasing flight connectivity to different cities in India to increase the tourist inflow.
“India ranked first amongst all tourist arrivals two years back, which dropped to number six position subsequently. Things are looking good now, as bilateral relation between the two nations is improving,” remarked Abdulla Ghiyas, chairperson, Visit Maldives, while talking to Business India.
It may be recalled that, after a politician made derogatory remarks against Prime Minister Modi two years back, a ‘Boycott the Maldives’ campaign had surfaced, which had impacted the tourist inflow to the archipelago. Indians form nearly 30 per cent of tourist arrivals there.
“Things are improving back,” Ibrahim Shiuree, MD, Visit Maldives told Business India. “We have launched a campaign with Malaika Arora as the brand ambassador, which really helped. Besides, our President Muizzu’s state visit to India in October last year, followed by PM Modi coming to Male as the chief guest now will help things normalise, leading to improvement on all counts, including tourism.