Maldives and India: Better Late Than Never

The President of Maldives Mohammed Muizzu, accompanied by his wife, landed at New Delhi on Sunday,6th October on a four-day state visit on the invitation of his Indian counterpart. This was his first state visit to India after he won the election in January this year riding on the “India out” campaign. Breaking the tradition of making first visit to India after assumption of office by Maldivian presidents, Muizzu instead chose to visit Turkey followed by China. Soon after assuming charge, the newly- elected president rescinded the bilateral agreement under which the 85-strong Indian armed forces personnel had been stationed in Maldives to train and assist the Maldivian Defence forces in operating the one Dornier aircraft and two Druv helicopters gifted by India for rescue operations. He also rescinded the agreement to have hydrographic survey of Maldives done by India. Instead, he soon asked China to fill in the gap on both issues. However, Maldives was soon engulfed in a financial crisis partially resulting from boycott of Indian tourists to Maldives and mainly due to its own economic policies. This compelled Muizzu to make a U-turn and request India to restructure the loan it owed to India. The Muizzu that recently toured India was altogether different from the one earlier spitting venom against his northern neighbour.

While the Indian Minister of External Affairs Dr. S. Jaishankar hoped that the visit will provide a “new impetus” to the ‘friendly bilateral ties’, the visit was widely seen as a Maldivian attempt to repair the bilateral relations strained since Muizzu took over his office. He declared that both sides “agreed on a comprehensive vision document, charting the course of our bilateral relationship.” “Both share a vision for comprehensive economic and maritime security partnership which encompasses development cooperation, trade and economic partnerships, digital and financial initiatives, energy projects, health cooperation as well as maritime and security cooperation," Muizzu claimed.

The visiting dignitary met EAM, Vice-President, Prime Minister and had delegation level talks as well. He also visited Mumbai and Bangaluru. While in Mumbai, Muizzu attended India-Maldives Business forum and batted for enhancing bilateral trade which stood at US$ 987.53 million in 2023-24. In Bangaluru, he met the Chief Minister of Karnataka. Earlier, his visit to Delhi resulted in many takeaways; both sides adopted the document “India -Maldives: A Vision for Comprehensive Economic and Maritime Security partnership.” It was also announced that India will refit the Maldivian Coast Guard ship Huravee on gratis basis. RuPay Card was also virtually launched in Maldives. Besides, the new runway of Hanimaadhoo International Airport (HIA) was also jointly inaugurated by the two heads of governments. Five MOUs were also signed between the two neighbours- one on the currency swap under which RBI will extend a budgetary support of US $ 50 million to Maldives. It is to be noted that Maldives owes US $ 400 million to India, the part-repayment of which has been extended by India by one year. The second MOU is between the Rastriya Raksha University, Ahmedabad and Maldivian National College of Policing and Law Enforcement for training Maldivian Defence Force personnel in India. The third MOU is between the Central Bureau of Investigation and the Anti-Corruption Commission of Maldives. The other two MOUs were on cooperation between the national Judicial Academy of India and the Judicial Service Commission of Maldives for training and capacity building of judicial officers of Maldives. The MOU on cooperation in sports and youth matters was also renewed.

One can ask the reasons of this turn around by the Maldives government. The answer lies in the geography and economy of the Maldives. The economy of this nation, an archipelago of 1,192 islands stretched around 800 kms across the Equator with a little more than 5,00,000 inhabitants, depends solely on tourism and export of tuna fish. A major part of its GDP of US $ 7.2 billion comes from tourism. Since the majority of international tourists come from India, their boycott had a devastating effect on the island nation’s economy. With its external debt soaring to US $ 3.37 billion, a staggering 45% of its GDP, Maldives was at the brink of an economic collapse. China, which officially accounts for a loan of more than US $ 1.5 billion to Maldives (though unofficially this figure might be higher by at least another 20% since, as a rule, China never discloses to the world at large some of the financial provisions of the agreements it enters into with third world countries), did not come to rescue of Maldives despite the latter having joined the infamous BRI. India, on the other hand, has so far pledged the developmental assistance to Maldives for its various projects worth US$ 500 million approximately, most of which have been completed. Even earlier, India, being the largest country in the region and therefore a first responder and net security provider, had foiled the coup attempt in Maldives in 1988, generously stood by the tiny nation during the tsunami and provided active health support during the Covid pandemic. India has also been the destination for the Maldivians for higher education and health services.

Moreover, India has been proactive in capacity building and human resources development in Maldives. Every year more than 200 Maldivians (excluding defence personnel) are imparted training in more than 65 professional institutes in India to shone their skills. These factors have left an indelible positive impression on the Maldivian population which was difficult for Muizzu to erase. This is why now the visiting dignitary has, on his arrival to India, to admit that “the historic relationship between the two countries is intertwined like the roots of a tree built on centuries of exchanges and shared values.” He seems to have finally realised that it will be his immediate northern neighbour India, who will promptly come to its rescue-be it security or financial crisis. Not only this, Muizzu went beyond praising India to announce that his country was ready to discuss the Preferential Trade Agreement with India.

Also, on her part, India has shown maturity in dealing with the vitriolic diatribes of Muizzu against India. Neither the Prime Minster nor his cabinet said a word against India’s southern neighbour. Instead, strictly following the “Neighbourhood First” policy, India continued her Developmental Partnership Assistance for Maldives and provided even a budgetary support to it. All these, coupled with the domestic pressure, have caused the change of heart in the Maldivian administration.

Though this volte face cannot be taken for granted as China, with its evil design to disturb the tranquillity of the Indian Ocean and encircle India with the ‘string of pearls’, is not going to watch quietly the resurgence of India- Maldives friendship, we have been able to secure our relations with Maldives for the time being. However, we should not lower our guards and instead keep practicing our ‘Neighbourhood First’ policy by addressing their concerns and sensitivities.

(The paper is the author’s individual scholastic articulation. The author certifies that the article/paper is original in content, unpublished and it has not been submitted for publication/web upload elsewhere, and that the facts and figures quoted are duly referenced, as needed, and are believed to be correct). (The paper does not necessarily represent the organisational stance... More >>