India - Maldives: PM Modi’s visit - A Post-Mortem
STORIES, ANALYSES, EXPERT VIEWS
Prime Minister Narendra Modi’s recent visit to the Maldives, during which several economic agreements were signed and projects inaugurated, marks a significant turnaround in bilateral relations after a period of strain.
Importance of Maldives: The Maldives, writes The Indian Express “is a key pillar of India’s ‘Neighbourhood First’ policy. Beyond deep-rooted cultural ties and a history of friendly relations….it sits atop critical sea lanes in the Indian Ocean, through which a major share of global trade and India’s energy imports pass. It is an integral part of India’s maritime security architecture. India provides economic support and assistance to the Maldives in infrastructure and healthcare. Tourism, which accounts for nearly a third of the Maldivian economy, saw Indians as the largest group of visitors for several consecutive years up to 2023.”
This trend was disrupted in 2024, after derogatory remarks by three Maldivian junior ministers (suspended subsequently) triggered a diplomatic row and led to a sharp decline in Indian tourist arrivals. In a bid to reverse this, President Muizzu acknowledged that 'India is one of the major countries that helps the Maldives with tourism. With PM Modi’s visit, it is going to increase a lot’.
It is significant that PM Modi also held separate interactions with the main Opposition party and leaders from across the political spectrum in the Maldives. “These engagements reflect New Delhi’s effort to insulate bilateral relations from the ebb and flow of politics between and within both countries.”
The China question: On the China question the paper writes, “it would be unrealistic to expect Malé to avoid doing business with Beijing….” But “as a key neighbour and regional power, India can counterbalance Beijing’s influence by making better offers — especially given that Maldives’s external debt burden has worsened as a result of China’s lending practices……”
‘Neighbourhood First’ policy regains credibility
At another level, India’s ‘Neighbourhood First’ policy appears to have regained some of its lost credibility. Just a few years ago it appeared as if the policy was at a nadir as Sri Lanka had drifted into China’s embrace and Maldives appeared to be headed there.
However, during Prime Minister Narendra Modi’s visit, The Asian Age writes “there were plenty of signals of how much the archipelago nation’s outlook towards India has changed…Mr Muizzu may have got elected President on an ‘India Out’ slogan with reference to around 90 Indian military personnel who used to help run the medical helicopter ambulance service and maritime surveillance for the multi-islands. He seems to have been won over by India’s sincere helping hand as he referred to India as the ‘first responder’ and ‘most trusted’ partner.”
India has expanded aid to Maldives much as it had done with Sri Lanka through emergency funding and easy credit to tide over its worst economic crisis. “Amid the realisation that playing the China card against India was unlikely to bear fruit in the light of the debt trap that Sri Lanka had fallen into and with China not too willing to help Maldives with easy lending, the swing back to India as a reliable ally has taken place to the benefit of the islanders.”
India has agreed to consider debt relief measures for $400.9 million while continuing support for critical infrastructure, including the construction of sea bridges between the capital Male and two islands to offer connectivity to nearly half the population.
