Indian Prime Minister Narendra Modi concluded his visit to the Maldives on Saturday, strengthening diplomatic relations through the announcement of infrastructure projects and essential financial support for the financially challenged Indian Ocean nation.
India, a dominant force in the region, expressed concerns regarding its small but strategically positioned neighbour, which appeared to be aligning more closely with its rival, China, after the election of President Mohamed Muizzu in 2023. Muizzu campaigned on an anti-India platform.
Since taking office, Muizzu has successfully facilitated the withdrawal of a limited number of Indian military personnel who were involved in operating search-and-rescue aircraft in the archipelago.
However, he has since moderated his critical stance towards India, and on Friday, he highlighted the cooperation between the two countries in areas of security and trade.
In a banquet speech, Muizzu emphasised the enduring partnership between India and the Maldives, stating, “India has long stood as the Maldives’ closest and most trusted partner.” This remark came during an event where he shared the stage with Modi, with whom he had met twice in the previous year.
“We hold the friendship of India in high regard and appreciate the prompt support your country has provided us during critical times,” Muizzu stated.
Upon his arrival on Friday, Modi announced a substantial $565 million credit line for the Maldives, a nation grappling with a significant foreign exchange crisis despite its flourishing tourism sector.
India has lowered the annual repayments of a previous credit line from $51 million to $29 million. Additionally, discussions between the two parties included the possibility of a free-trade agreement.
Muizzu stated that the newly established credit line is intended to enhance the security forces of the Maldives, as well as advance the healthcare, housing, and education sectors.
During a two-day visit, Modi inaugurated a new headquarters for the Defence Ministry and several infrastructure projects funded by India, including roads and a housing scheme comprising 4,000 units.
Muizzu stated on X on Saturday that Modi’s visit had established “a clear path for the future of Maldives-India relations,” following the Indian leader’s departure from the capital, Male, after the 60th Anniversary of Independence celebrations.
“Our relationship continues to evolve, influenced by interpersonal connections and collaboration across multiple sectors,” Modi stated in a post on X.
India has reaffirmed its commitment to supporting the aspirations of the Maldivian people.
The Maldives, renowned for its luxury tourism and pristine beaches, has emerged as a significant geopolitical hotspot. This archipelago, comprising 1,192 islands and spanning 800 kilometres (500 miles) along the equator, is strategically positioned along vital global shipping lanes.
The Maldives relies heavily on China and India, which stand as its two largest bilateral lenders.
