Latest news with #India-MaldivesJointVisionforaComprehensiveEconomicandMaritimeSecurityPartnership
Mint
25-07-2025
- Politics
- Mint
Explained: How Maldives went from ‘India Out' to inviting PM Modi for Independence Day
Prime Minister Narendra Modi begins his two-day state visit to the Maldives today at the invitation of Maldivian President Mohamed Muizzu. This marks his third visit to the island nation and the first by a head of government during the tenure of Maldivian President Mohamed Muizzu. The visit is expected to deepen the growing partnership between India and the Maldives, especially under the framework of the India-Maldives Joint Vision for a Comprehensive Economic and Maritime Security Partnership, adopted during President Muizzu's visit to India in October 2024. PM Modi's visit to the island nation marks a significant shift in India-Maldives relations, especially since President Muizzu became President of the island nation in September 2023. Since taking office, the Maldives under Muizzu adopted a policy aimed at strengthening relations with China and in a way reducing dependence on India. This approach was influenced by Muizzu and his party's 'India Out' campaign, domestic politics, and pro-China tilt, according to experts. However, in recent years, bilateral ties have been reset through what experts call a pragmatic approach. 'Given the new complexities and necessities, both India and the Maldives are employing pragmatism, emphasis on quality, and non-partisanship to shape the course of the relationship,' wrote Aditya Gowdara Shivamurthy in a recent piece. Shivamurthy is an Associate Fellow with the Strategic Studies Programme at the Observer Research Foundation (ORF). Union Cabinet Minister Kiren Rijiju had attended Muizzu's oath-taking in September 2023. Soon after taking office, Muizzu visited Turkey in December 2023 and China in January 2024. This was a departure from the tradition of the new Maldivian presidents visiting India first after taking office. In December 2023, Modi met Muizzu in the United Arab Emirates (UAE) on the sidelines of the COP-28 summit. Also, India responded positively to Muizzu's request to withdraw troops. External Affairs Minister S Jaishankar met his Maldivian counterpart on the sidelines of the Non-Aligned Movement (NAM) summit in January 2024. This despite derogatory remarks by some Maldivian ministers against Modi and Muizzu, labelling India a 'bully'. 'Despite provocations, India continued to engage. It understood domestic compulsions of Muizzu's demands and replaced its 76 troops with technicians in May 2024, overcoming their biggest bilateral hurdle," Shivamurthy wrote. In Budget 2025, India's aid to Maldives was increased by ₹ 120 crore compared to last year's allocation. The government promised a grant of ₹ 600 crore to Maldives—an increase of 27 per cent from ₹ 400 crore allotted last year. The replacement of troops, the ruling People's National Congress (PNC)'s super-majority in parliament following the April 2024 elections, the dire economic situation at home, and underwhelming support from China, nudged the Maldives to separate politics from geopolitics, writes Shivamurthy. In May 2024, Maldives Foreign Minister Moosa Zameer visited India to mend ties and seek economic assistance, he points out. The visit paved the way for further high-level engagements and honest conversations. President Muizzu visited India in October 2024. The five-day visit culminated in the adoption of the 'Vision for Comprehensive Economic and Maritime Security Partnership.' 'The Maldives will not do anything that would harm India's security interests. We value India's role as a close neighbour and friend,' President Muizzu said during the visit, marking a sharp departure from his earlier 'India-Out' campaign. Economic considerations also played a pivotal role in this diplomatic recalibration, according to experts. India also rolled over three Treasury Bills worth US$150 million and offered currency swaps worth US$750 million to sustain the Maldivian economy. In April 2025, India approved the highest-ever quotas for essential goods exports to the Maldives, reaffirming its commitment to the welfare of its maritime neighbour. Trade between the two nations has grown substantially-from crossing the USD 300 million mark in 2021 to exceeding USD 500 million in 2022. In 2023, bilateral trade stood at USD 548 million. This surge was driven by the launch of a dedicated cargo vessel service in September 2020 and several Lines of Credit (LoC) projects initiated since 2021. Visa-free access for Indian business travellers, granted in February 2022, further encouraged commercial engagement. Earlier this week, Foreign Secretary Vikram Misri attributed the turnaround in the relationship to India's hard work on ties with the island nation. According to Imran Khurshid, a visiting research fellow at the International Centre for Peace Studies in New Delhi, PM Modi is directly responsible for this diplomatic transformation. 'Faced with political hostility and personal criticism, he chose to remain committed to a pragmatic, forward-looking foreign policy. Rather than retaliating, Modi's approach emphasised engagement, development cooperation, and people-to-people ties—hallmarks of a mature global leader,' Khurshid wrote in a recent piece. As things stand, the Muizzu government has distanced its domestic politics from foreign policy and, according to experts, reached a compromise with India by agreeing to replace Indian troops with technicians instead of a complete withdrawal. In May 2024, 76 Indian military personnel were replaced by civilian personnel sent by Hindustan Aeronautics Limited (HAL). Additionally, the Maldives shifted one of its Chinese agriculture projects, after India relayed its concerns about Chinese projects near the India-funded Uthuru Thila Falhu (UTF) harbour. Shivamurthy pointed out that India understands the Maldives' domestic compulsions and has tolerated its agency and right to engage with other countries. Historically, the Maldivian Democratic Party (MDP), first political party of Maldives the island nation's democratic transition in 2008, has had a cordial relationship with India. The PNC has, however, fostered good relations with China. However, as Muizzu replaced his partisan policy with a pragmatic one, he has assuaged New Delhi's concerns by respecting its sensitivities. And in return, he has secured the much-needed economic assistance and cooperation, writes Shivamurthy.
Hindustan Times
25-07-2025
- Business
- Hindustan Times
PM Modi in Maldives today: Independence Day honour, MoUs and key deals on agenda
Following a successful diplomatic visit to the United Kingdom, Prime Minister Narendra Modi departed for the Maldives on Thursday, kicking off the second leg of his two-nation tour. Modi's visit signals a major diplomatic reset between India and the island. Prime Minister Narendra Modi will be the chief guest at the Maldives' 60th Independence Day celebrations on Friday.(PTI) Modi is visiting the Maldives at President Mohamed Muizzu's invitation from July 25 to 26. He will also be the chief guest at the Maldives's 60th Independence Day celebrations in the capital, Malé, on Friday. Also Read | India to have freer access to UK market as landmark deal signed The visit can be termed as significant as it marks the first high-level exchange between the two countries since Muizzu's election in 2023, which saw a visible shift in Malé's foreign policy orientation. The two leaders are also expected to hold bilateral talks focusing on strategic cooperation, economic partnership, and maritime security. PM Modi's Maldives visit: Key agenda During his visit to the Maldives, Modi will hold extensive talks with President Mohamed Muizzu and inaugurate several India-assisted development projects in the island nation, the external affairs ministry said. "The prime minister's state visit also happens to be the first state visit of a head of government that President Muizzu is hosting in his presidency since he assumed office in November 2023," Foreign Secretary Vikram Misri said. Also Read | Modi's Maldives visit is a reset button pressed with patience According to Misri, the India-Maldives Joint Vision for a Comprehensive Economic and Maritime Security Partnership, finalised last year, remains a key framework — and developments on this front are likely during the visit. Apart from this, various MOUs will be signed between India and the Maldives during PM Modi's trip to the Island nation, G Balasubramanian, High Commissioner of India to Maldives said. "We would be having bilateral meetings at the level of Prime Minister and President both at the Presidency, followed by various MOUs that would be signed and various projects that have been done under the Indian support whether it is in terms of line of credit or buyer's credit or grants, those projects, many of them would be handed over or inaugurated. On the next day, there would be other meetings, and in the evening, there are the Independence Day celebrations, which our Prime Minister is attending as the guest of honour, after which the visit should conclude," he said. The Prime Minister's visit to the Maldives is being seen as a crucial step toward resetting ties between the two countries, which had come under serious strain after President Mohamed Muizzu — widely viewed as leaning towards China — took office in November 2023.
Hindustan Times
24-07-2025
- Business
- Hindustan Times
India builds quiet momentum in Maldives
India and Maldives, though not connected by land, share a deep and strategically significant maritime relationship. One that places the Maldives at the heart of India's Neighbourhood First and MAHASAGAR vision. The upcoming State visit to the Maldives by Prime Minister (PM) Narendra Modi from July 25–26 on being invited by President, Dr. Mohamed Muizzu will be his third visit to the island nation since 2014 but the first visit since President Muizzu took office in November 2023. PM Modi will also be the guest of honour at the Maldives' Independence Day celebrations on July 26, which marks both 60 years of the country's independence and six decades of diplomatic relations between India and Maldives. The visit is slated to hold discussions on issues of mutual interest and take stock of the progress in the implementation of the India-Maldives Joint Vision for a Comprehensive Economic and Maritime Security Partnership. New Delhi, India - Oct. 7, 2024: Prime Minister Narendra Modi and Maldives President Mohamed Muizzu shake hands before their meeting at the Hyderabad House in New Delhi, India, on Monday, October 7, 2024. (Photo by RAJ K RAJ / Hindustan Times)(RAJ K RAJ /HT PHOTO) The visit comes at a time of gradual recovery in bilateral ties. In the initial months of his Presidency, Muizzu's decisions were clouded by anti-India rhetoric that marked his campaign. From his 'India Out campaign' to requesting Indian military personnel to withdraw from the Maldives to the diplomatic row, which was hyped by the media, the relations suffered a setback. And this is not the first time that anti-India sentiments were pushed. The first-time such sentiments surfaced was in 2013 and again in 2020. Yet, relations received attention with Muizzu visiting New Delhi twice in 2024 - first for PM Modi's swearing-in ceremony in June, and then again for a state visit in October, suggesting a degree of flexibility in foreign policy once in office. Throughout this period of diplomatic unease, India maintained a steady and measured response. It continued to disburse financial support, including $100 million through treasury bills and a $400 million line of credit. Additionally, India extended a bilateral currency swap facility worth ₹3,000 crore to help the Maldives manage external payment obligations. These steps were framed as a part of a broader Comprehensive Economic and Maritime Security Partnership, which was launched during Muizzu's visit to India in October 2024, which is also expected to be part of the discussions during Modi's upcoming visit. PM Modi's visit is expected to build on this economic and maritime security partnership. According to officials involved in preparations, key areas of focus will include expanding the reach of India's Unified Payments Interface (UPI) in the Maldives, exploring direct digital connectivity for public services, and designing ways to boost bilateral tourism. India and Maldives have an existing Currency Swap Agreement which was signed in 2019 and the RuPay card services, which were launched with the signing of the agreement between National Payments Corporation of India (NPCI) and the Bank of Maldives (BML). Additionally, India has been facilitating subscription of several such treasury bills by the SBI and rolling them over, annually, interest-free to the government of Maldives as emergency financial assistance since 2019. The most recent one being in May 2025 when India offered a Government Treasure Bill of $50 million to support the nation in its fiscal reform efforts towards economic stability. Even for this years' budgetary allocations, India increased allocations for Maldives to ₹600 crores from the previous ₹470 crore. In recent years, India has been one of the top source markets for Maldivian tourism. In 2018 and 2019, bilateral agreements were signed on the facilitation of visa arrangements. Following these agreements, both in 2021 and 2022, Indian tourists ranked first among international arrivals (2020 marked a decline due to Covid-19 restrictions). Also, in 2020, an air travel bubble was established under which over 45 flights were operating per week between the two countries. As a result, the government in Male has stated its intention to attract more Indian visitors, with discussions underway on easing visa policies and promoting joint tourism packages. Other likely topics for discussion include renewable energy, fisheries cooperation, and infrastructure development. India has been a major contributor to Maldivian infrastructure through both grants and concessional credit. The Greater Male Connectivity Project, for instance, is the largest infrastructure initiative India has ever supported in a neighbouring country. As of 2023, India had committed over $2 billion in development assistance to the Maldives through a combination of grants and credit lines. In the past years, two projects have received immediate attention - the water and sanitation project, which exists across 34 islands of the country, and roads and reclamation. While the contract for construction of roads in Addu has been finalised, India has also committed to expanding Hanimadhoo airport and developing the Gulifalhu Port. Security cooperation will be a more delicate topic, but it is unlikely to be left out of the conversation entirely. In the past, India has granted technical support, provided naval or maritime vessels and installed coastal surveillance systems and gifted a patrol vessel named KAAMIYAB to the Maldives in 2019. The advanced light helicopters and Dornier aircrafts were provided upon Maldivian government's request to facilitate the Maldivian army's capabilities. The Maldives remains a part of the Colombo Security Conclave, a trilateral grouping with India and Sri Lanka that focuses on maritime domain awareness and disaster response coordination. India is expected to push for making such platforms more operationally effective, particularly against the backdrop of growing concerns over trafficking, radicalisation, and the presence of external naval forces in the Indian Ocean. This visit also carries important symbolic value. The Maldivian President's Office has called the 60th anniversary of diplomatic relations a moment of 'profound significance,' and PM Modi's presence at the independence day ceremony underscores the importance of the occasion. More importantly, because India was among the first to recognise Maldives independence in 1965 and established diplomatic relations. The upcoming visit seems designed to maintain diplomatic momentum during what has been a somewhat sensitive phase in bilateral relations. Over the past year, it has become increasingly clear that while political narratives may shift with electoral cycles, the structural dependencies between the two countries remain largely intact. India continues to be among the Maldives' largest development partners, while Maldives occupies a strategic location in the Indian Ocean that is central to India's maritime posture. The visit's real impact lies in the quieter, cumulative gains. The focus on digital infrastructure, economic recovery, and people-to-people linkages points to a pragmatic recalibration of the relationship. Most importantly, the two sides will take stock of the economic and maritime security partnership, and the latter is very important for the peace and stability in the Indian Ocean region. As both governments juggle evolving domestic and regional priorities, consistent leadership-level engagement could help avoid the kinds of misunderstandings that have surfaced in the recent past and enable the two sides work on mutual interest and benefits. This article is authored by Cchavi Vasisht, associate fellow and Nandini Bhatnagar, research analyst, Chintan Research Foundation, New Delhi.
