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First Post
2 days ago
- Business
- First Post
India–Maldives ties: Time to look to the future, not the past
Lately, President Muizzu has conceded Delhi as a loyal friend and is working closely with India for economic recovery, which is unlikely to happen without the Maldives helping itself read more President of the Maldives Mohamed Muizzu, right, shakes hand with Indian Prime Minister Narendra Modi after signing a memorandum of understanding between the two countries in Male, Maldives, Friday, July 25, 2025. (Indian Prime Ministers Office via AP) At the end of Prime Minister Narendra Modi's two-day visit to the Maldives, 25-26 July, Foreign Secretary Vikram Misri said it all in his post-talks news briefing. 'Together, the two sides were looking into the future, not the past,' he said. This was India's position even on a day-to-day basis when, as a freshly minted president, host Mohamed Muizzu bad-mouthed India as much as he could for any Maldivian leader on bilateral matters. STORY CONTINUES BELOW THIS AD The visit was rich in optics—yes. From a public diplomacy perspective, it matters the most in both nations, especially now. The content of the visit was no less positive but was not flashy, as some in India especially had expected. At the end of their talks, Muizzu conceded at a news conference that India was a 'supportive, loyal friend'. It had taken him months to realise it and acknowledge it in public. In retrospect, it is safe to conclude that in his first weeks as president, and during his presidential poll campaign earlier, he was misinformed and misled by those around him. Share of blame Yet, Muizzu cannot absolve himself of the blame, as he already had six long years of experience as a senior minister for the all-important infrastructure development sector during the successive presidencies of Mohammed Waheed and Abdulla Yameen. He spent five years through Yameen's full term in office, during which time he was not known to have even squirmed at the president's anti-democracy initiatives. When Yameen launched his 'India Out' campaign while in the Opposition, Muizzu was seen in those rallies, though not all of them. In turn, this made Muizzu suspect in ordinary Indian eyes, as New Delhi too had reasons to brand Yameen as 'anti-India', more than for his being 'pro-China' or anything else. It was based on Yameen's perceptions about India in the context of Maldivian domestic politics. This is one area where Muizzu too could still trip if he does not take the India element out of his domestic political calculations. STORY CONTINUES BELOW THIS AD This includes motivated domestic perceptions that India backs democratic forces in the archipelago, represented purportedly by the Maldivian Democratic Party (MDP), and that every other leader, including Muizzu, is an autocrat or despot. This domestic perception among all political players in the country is not supported by India's actions that are people-centric, not personality-centric. Greater legitimacy The Prime Minister was accompanied by a high-level team, which included External Affairs Minister (EAM) S Jaishankar, National Security Advisor (NSA) Ajit Doval, and Foreign Secretary Vikram Misri. This indicated the level of engagement that accompanied the visit. Incidentally, the presence of NSA Doval was a lesser-known fact for the media in the two countries, but that does not necessarily mean that there were 'secret talks' on the security front, as often assumed. For optics, you had Muizzu receiving the prime minister personally at the Male airport, accompanied later at the official reception with a 21-gun salute, both of them unprecedented, and Modi's presence as the chief guest at the 60th Independence Day of Maldives. It was also the 60th anniversary of bilateral diplomacy, as India was among the first nations to recognise the new Maldivian regime post-independence in 1965. STORY CONTINUES BELOW THIS AD Locally, eyebrows were raised, yes, when President Muizzu addressed a joint rally of the Maldivian National Defence Force (MNDF) and the Maldivian Police Service (MPS) on the afternoon of Independence Day, when the Indian visitor was still in town. This was the first time an incumbent president was addressing the two together after then-President Maumoon Abdul Gayoom bifurcated the infamous National Security Service (NSS) in 2006, in the run-up to full democratisation through a new constitution and presidential elections in 2008. Looked at from a domestic angle, the Indian Prime Minister's visit, followed by that of Sri Lankan President Anura Kumara Dissanayake in double-quick succession (July 28-29), is not about his administration opening up to ever-supportive neighbours, which is the truth of the matter. Instead, the perception, starting from Camp Muizzu, is one of his acquiring international legitimacy after having stabilised his hold over domestic governance and politics, in that order. Third visitor, who? STORY CONTINUES BELOW THIS AD Given the brutal majority that his People's National Congress (PNC) enjoys in the 93-member Parliament, there was no need for Muizzu to get an 'undemocratic' anti-defection law passed without debate. Nor was there any justification for the government-controlled Judicial Service Commission (JSC) suspending first and sacking three Justices of the Supreme Court when the full, seven-judge bench was set to hear a petition challenging the anti-defection law. Yet, he did both and initiated more such moves that critics claimed were 'anti-democratic'. It is in this context that critics see Muizzu's eagerness to have more foreign visitors on invitation, to tell his world that the international community stood by him. Hence, there is also speculation, if not betting, on who the 'lucky' third one would be after Modi and Anura to receive Muizzu's invitation to visit his country. New Delhi may not have any direct interest, least of all influence, in Muizzu's choice of the next couple of overseas Heads of State and/or Government visiting Maldives on invitation. Yet, India would be watching it all from the ringside to have a clear perspective of Muizzu's foreign, security, and overseas economic policies—not necessarily in that order. STORY CONTINUES BELOW THIS AD Will the next visitor be the Chinese Prime Minister, if not President Xi Jinping, or Turkey's President Recep Erdogan? After all, Muizzu had courted both nations in his early weeks in office, and possibly before his election, too, and from whose shoulders he was firing (their?) anti-India salvos, too, before seeing their true colours, and tucked his tail between his legs without losing time or initiative. Credit and more On the constructive side, India and Maldives signed a total of eight agreements during Modi's visit, all of them discussed and debated threadbare in-house in the two governments and between them. The list includes one on a $565 million Line of Credit (LoC) from India and another on pharmaceutical supplies. This, in a way, is acknowledgement of the Muizzu Government's failure to obtain 'quality medicines at affordable prices' from Europe without depending on a 'single source' (India), as he had thumbed his chest last year. STORY CONTINUES BELOW THIS AD Before the pharma deal now, Muizzu had gone back on his muscle-flexing on commissioning annual supplies of essentials, including rice, sugar, and wheat flour, from distant Turkey, again to limit dependence on a 'single source'. It happened after the Houthis' attacks in the Red Sea provided a legitimate excuse for Erdogan to possibly go back on his purported promise during Muizzu's visit only weeks after assuming office in November 2023. In Male, PM Modi also inaugurated multiple India-funded projects and handed over the keys to owners under a housing scheme. In a city with the highest population density for a South Asian capital, urban housing is still politically and electorally sensitive. Balanced FTA Of equal importance is one setting the terms of reference for further discussions on a Free Trade Agreement (FTA) between India and Maldives. For now, Maldives especially has learnt a lot from the hurried FTA President Yameen signed with China in 2017 but whose implementation he and his successor, President Ibrahim 'Ibu' Solih, both did not take up. STORY CONTINUES BELOW THIS AD Now, after implementing the China FTA since January 1 this year, Muizzu has found out that Maldives was losing scarce revenue, big time. Maldivians were spending dollars in big numbers, not only in conventional trade but also through online sales of Chinese goods, airlifted mostly out of Hong Kong. In recent months, this has affected small and medium traders in the country. They form a key electoral constituency. But then a 30 per cent service tax on specified online trade firms dealing in Chinese goods has not helped after the latter introduced equal discounts for their Maldivian customers. This would engage Indian negotiators as they work out the details of the Indian FTA in the coming weeks and months. They will also have another example in the Sri Lanka-Maldives FTA, which was signed during President Dissanayake's visit, post-Modi's. National dichotomy Maldives' woes owe to the nation living beyond its means. This has an indirect impact on national security and foreign policy that flows from over-dependence on external assistance. In the name of upholding national security and sovereignty viz the ever-helpful Indian neighbour, presidents like Yameen and Muizzu welcomed extra-regional powers, especially China. It only complicated the nation's security situation even more. They too silently acknowledged post facto that China had a larger scheme in which the Maldives was only a speck, and they could do nothing about it if sucked in more than ready. But domestic compulsions stood in the way of Yameen applying the correctives. With little choice after he found out that China, and also Turkey, did not match word with action, Muizzu at least is on a course correction viz India relations. Maldives' problems reside in the economic sphere. In a 500,000-population, half of whom are on the electoral list, first-time voters in their thousands are jobless. They tend to side with him who promises the moon. Frustration has already driven them to drugs, and the puritans among them tend to take to religious radicalisation—in the absence of any left political movement. Skill sets & FDI All these when available jobs, again in tens of thousands, are going to foreigners, mostly Bangladeshis but with a sizable sprinkling of Indians and some Sri Lankans, too. This is because local youth ambitions are not matched by skill sets that can attract big-ticket FDI in non-tourism sectors, too. Competitive populism is the bane. Every post-democracy president, including incumbent Muizzu, promised to set matters right but has been swept away by electoral compulsions. Going back to the days of 'elected autocracy' is not an option, but that is what successive post-democracy presidents have attempted in their own ways—but failed on both fronts. The people simply threw them out in favour of yet another untested individual, whose face was relatively fresh and whose promises looked beneficial. All of it often leads to situations wherein incumbent governments are tempted to fall back even more on external economic assistance, but in terms of 'competitive ideology', though none exists. Successful experience Muizzu is working closely with India for economic recovery that is unlikely to happen without Maldives helping itself. Given India's successful experience in pulling itself out of the fiscal/economic mess that it found itself in the early nineties, the Maldivian government, as a democracy, can also seek guidance in the matter, after downsizing them to Maldivian levels. In 2013, President Yameen's foreign policy document claimed that his government would make the nation economically strong to be able to have an 'independent foreign and security policy'. The reference was, of course, to India. He failed on the first count, so his government did not reach the second stage, despite his wooing China, as if the nation had a panacea for Maldives' ills. Muizzu began by placing himself in such a conundrum but has been quick to retrieve at least some of the lost ground. How he proceeds from here will decide the future for the Maldives and strategic peace for the region's nations, including India and Sri Lanka. That is where the Maldives' strategic reset should begin, where the Colombo Security Conclave (CSC) could provide a basis for defining/redefining the nation's priorities in the present and the future. Such an approach alone can help the Maldives and Muizzu to achieve what they intend to achieve on the domestic front. That is without them having to invite and/or facilitate complex competitive competition between superpower America and wannabe superpower China, both of whom do not belong here but want to be here through proxies. The writer is a Chennai-based Policy Analyst & Political Commentator. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views.
First Post
4 days ago
- Business
- First Post
Why a reset in India-Maldives ties is important for both
President of the Maldives Mohamed Muizzu, right, shakes hand with Indian Prime Minister Narendra Modi after signing a memorandum of understanding between the two countries in Male, Maldives, Friday, July 25, 2025. (Indian Prime Ministers Office via AP) A common goal of diplomacy is to build better relationships with other nations, even those with adversarial relationships. This is even more important if those nations are your neighbours. Historically, all global powers rose as regional powers before becoming global powers. Thus, a successful neighbourhood policy is needed because if some neighbours are unfriendly, they will almost certainly try to block India' rise as a global power. Turning adversaries into allies can be a significant outcome of successful diplomacy, but it is easier said than done. STORY CONTINUES BELOW THIS AD A carefully planned approach is needed, which must comprise several strategies, such as utilising dialogue and negotiation to de-escalate tensions, building relationships and establishing agreements on various issues like trade, climate change, or security, and creating a framework to interact and manage relations in a mutually beneficial manner. India's neighbourhood is often described as hostile due to a complex interplay of historical factors, geopolitical rivalries, and ongoing disputes. These include unresolved border issues, religious and ethnic tensions, and concerns about India's regional dominance. The partition of British India in 1947 created Pakistan, and the resulting division led to long-standing animosity and mistrust, with Pakistan often viewing India as an existential threat. India has unresolved border disputes with several neighbours, including China and Pakistan, which have resulted in armed conflicts and ongoing tensions. India's aspiration to be a regional power is seen by some neighbours as a threat to their sovereignty and autonomy, leading to counterbalancing efforts and strategic competition. The relationship with Pakistan is particularly fraught with historical baggage, including the Kashmir conflict, cross-border terrorism, and nuclear weapons competition. India and China share a long border with disputed areas, and there is ongoing competition for influence in the region, including infrastructure development and military presence. The relationship between Bangladesh and India has experienced a period of worsening following the removal of Sheikh Hasina's government and the establishment of the Muhammad Yunus-led interim administration. Even during Sheikh Hasina's rule, issues like border management, water sharing, and migration continued to pose challenges. STORY CONTINUES BELOW THIS AD Nepal is strategically important for India, but it has concerns about India's influence and potential interference in its internal affairs. The island nations Sri Lanka and the Maldives are also within India's sphere of influence, but India faces competition from other powers, particularly China, for influence in these countries. Despite the challenges, India has been actively pursuing a 'Neighbourhood First' policy, aiming to enhance cooperation and development assistance to its neighbours. This policy involves initiatives like infrastructure development, trade and investment, and capacity building, with the goal of fostering closer ties and promoting regional stability. However, the success of this policy is contingent on addressing the underlying issues and building trust with its neighbours. Against this background, Prime Minister Narendra Modi's visit to the Maldives must be seen as a very important diplomatic step. Maldives holds a significant position among India's vital maritime neighbours. India has actively engaged in various efforts aimed at bolstering the defence and security infrastructure in the Maldives through capacity development and capability enhancement. India has steadfastly provided financial aid and helped towards maintaining the security of the island nation. STORY CONTINUES BELOW THIS AD Under President Mohamed Muizzu, India-Maldives relations have experienced a period of strain, largely due to his 'India Out' campaign. Muizzu campaigned for the presidency on a platform advocating for the withdrawal of Indian military personnel from the Maldives. This rhetoric, aimed at bolstering Maldivian sovereignty and nationalism, created friction with India. Actions taken after assuming office further worsened relations. Muizzu's first act as president was to formally request the withdrawal of Indian military personnel stationed in the Maldives. While India eventually replaced its military personnel with civilians, this initial demand signalled a shift from the previous administration's 'India First' policy. Muizzu pursued a policy of diversifying the Maldives' foreign relations, including strengthening ties with China. This included Muizzu's choice to make his first official trip to China instead of New Delhi, breaking with established tradition. Comments targeting PM Modi also negatively impacted the relationship. In January 2024, Maldivian government officials, reportedly affiliated with the Muizzu administration, made derogatory remarks on social media aimed at the Indian prime minister. These comments, although later disavowed by the Maldivian government, resulted in a strong backlash in India and negatively impacted tourism from India to the Maldives. STORY CONTINUES BELOW THIS AD Such actions, particularly the 'India Out' campaign, created a period of tension and uncertainty in the traditionally strong relationship between India and the Maldives. More recently, however, relations seem to be recalibrating. India has provided significant economic assistance to the Maldives, and Muizzu has toned down some of his anti-India rhetoric. He has visited India, and both leaders have pledged to open a new chapter in bilateral ties. This culminated in Prime Minister Modi's recent visit to the Maldives on July 25-26 as the guest of honour at the Maldives' 60th Independence Day celebrations, signalling a potential warming of relations. PM Modi's two-day trip is aimed at boosting India's development partnership with the Maldives. This is his first visit to the island nation since President Muizzu took office. As PM Modi put it, 'Peace, stability, and prosperity in the Indian Ocean region are our shared goals.' He stressed that India will remain the 'first responder' for the Maldives and that it will 'continue to support the Maldives in strengthening its defence capabilities'. STORY CONTINUES BELOW THIS AD PM Modi announced a $565 million credit line, saying that 'This will be used for projects linked to infrastructure development in line with the priorities of the Maldivian people.' The Maldives president said that the credit line from India would be used to strengthen the Maldives' security forces, as well as improve healthcare, housing, and education. He added that 'India's continued assistance to the Maldives through the export of essential commodities is a key facet of our bilateral cooperation". The reset in bilateral ties that is taking place was evident from President Muizzu's remarks at the banquet that he hosted for PM Modi. Muizzu said, 'This year marks 60 years of diplomatic relations between the Maldives and India, a milestone that reflects not only our shared history but also the depth and resilience of our partnership. Yet, the bond between our people predates diplomatic formalities. For centuries, the Indian Ocean has been a witness to our shared journey. As traders, travellers, and neighbours, we exchanged goods, stories, and ideas across these waters for centuries. It is the same ocean that unites us today with ties that no tide can break.' STORY CONTINUES BELOW THIS AD Heaping praise on India, he added: 'India has long stood as the Maldives's closest and most trusted partner. Our collaboration spans a wide range of areas, from security and trade to healthcare, education and beyond, touching the everyday lives of our citizens. Every day hundreds of Maldivians travel to India for medical care, education and business, just as we warmly welcome members of the Indian diaspora who continue to contribute meaningfully to our economy and society. My Govt's vision is clear, to build a resilient, inclusive and forward-looking economy that is vibrant to empower our youth, to thrive in the digital age and to ensure lasting peace and security in our shared region. In pursuing these goals, India's partnership remains invaluable.' PM Modi reciprocated the warm sentiments expressed by the Maldives president. 'India-Maldives relations are centuries old. We are neighbours, partners, and true friends who stand together in times of need. Like I said earlier too, Maldives holds a special place in India's 'Neighbourhood First' policy…This is not just diplomacy but a relation of deep affinity,' PM Modi said. STORY CONTINUES BELOW THIS AD The Maldivian government, under President Muizzu, still maintains a close relationship with China. Relations between China and the Maldives are experiencing a period of strengthened ties and elevated cooperation. The Maldives has emphasised that its friendship with China should not be influenced by any third party and that it will safeguard regional peace and development. However, China's loans for infrastructure projects have raised concerns about the Maldives' debt burden, as China is its largest external creditor. Summing up, Prime Minister Modi's visit to the Maldives on its 60th Independence Day as Guest of Honour marks a significant step towards improved relations. Following a period of strained relations, there are signs that the Maldives is moving towards a more cooperative stance towards India. While President Muizzu's initial policy sought to distance the Maldives from India, recent interactions suggest a shift towards repairing and strengthening ties. The shift towards pragmatic diplomacy suggests that the Maldives is recognising the strategic importance of both India and China as regional powers and is now seeking to balance its relationships with the two regional powers. The writer is a retired Indian diplomat and had previously served as Consul General in New York. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views.
First Post
4 days ago
- Business
- First Post
Tourism in Maldives to grow after PM Modi's visit, says President Muizzu
Muizzu on Saturday said PM Modi's visit will help boost tourism in the island nation and strengthen ties between the two countries. He also expressed hope about finalising a free trade agreement with India soon, calling New Delhi a 'crucial partner' for the Maldives. read more President of the Maldives Mohamed Muizzu, right, shakes hand with Indian Prime Minister Narendra Modi after signing a memorandum of understanding between the two countries in Male, Maldives, Friday, July 25, 2025. (Indian Prime Ministers Office via AP) Maldivian President Mohamed Muizzu on Saturday said that Prime Minister Narendra Modi's visit will give a fresh boost to tourism in the island nation, calling India a key contributor to the sector. 'India is one of the major countries supporting our tourism. With the Prime Minister's visit, we expect further growth and stronger people-to-people ties,' Muizzu said as PM Modi concluded his two-day visit to the Maldives. Muizzu also expressed confidence in finalising a free trade agreement (FTA) with India. 'We've started the discussions, and I'm very hopeful we'll conclude them soon,' he said. STORY CONTINUES BELOW THIS AD Calling India a 'crucial partner,' the Maldivian President acknowledged New Delhi's longstanding support. 'We've all seen how India has helped Maldives in the past—and there's no doubt it will continue to play a vital role in our future,' he added. When asked about a potential visit to India, Muizzu said he hoped to travel 'soon—either this year or in the near future.' PM Modi's visit marked a reset in India-Maldives ties, which had strained following Muizzu's election campaign built around the 'India Out' narrative. His visit to attend the Maldives' 60th Independence Day celebrations in Male, where he was the Guest of Honour, was the first by a foreign leader since Muizzu took office. Ties began to normalise after Muizzu visited India in October last year. During Modi's visit, the two sides signed several MoUs and officially launched bilateral FTA talks. India also extended a ₹4,850 crore Line of Credit to Maldives, and both countries issued a commemorative stamp to mark 60 years of diplomatic relations. President Muizzu called India 'Maldives' closest and most trusted partner.'
Asahi Shimbun
5 days ago
- Business
- Asahi Shimbun
India's Modi announces credit worth $565 million to the Maldives and launches free trade talks
Indian Prime Minister Narendra Modi, center, and Maldives President Mohamed Muizzu, center right, watch a traditional welcome dance upon Modi's arrival at the airport, in Male, Maldives, July 25. (Indian Prime Ministers Office via AP) COLOMBO, Sri Lanka--Indian Prime Minister Narendra Modi on Friday announced a $565-million line of credit to the Maldives during a visit to the Indian Ocean archipelago, as the two countries launched formal talks for a free-trade agreement. Modi is visiting the Maldives, known for its upmarket tourist resorts, to mark the 60th anniversary of its independence and diplomatic relations between the two countries. The announcement came during Modi's joint media statement with Maldives' President Mohamed Muizzu. The two-day visit is crucial to India's ambition to control the seas and shipping routes of the Indian Ocean in a race with its regional rival China. It also marks the further easing of diplomatic tensions between the two nations that followed the election of pro-China Muizzu in 2023. Regional powers India and China compete for influence in the archipelago nation, which is strategically located in the Indian Ocean. On Friday, Modi witnessed the exchange of agreements to cooperate in sectors such as fisheries, health, tourism and digital development. He also formally handed dozens of heavy vehicles to the Maldives' defense forces. 'India is Maldives' closest neighbor. Maldives holds an important place in both India's neighborhood- first policy and ocean vision," Modi said. 'India is also proud to be Maldives' most trusted friend.' The line of credit will be used for 'infrastructure and development projects in line with the priorities of the people of the Maldives,' he said. "India will continue to support Maldives in developing its defense capabilities. Peace, stability and prosperity in the Indian Ocean region is our common goal," he added. During Muizzu's visit to India last October, India announced financial support to the cash-strapped Maldives in the form of a $100-million treasury bills rollover and the countries signed a $400-million currency swap agreement. Tensions between India and the Maldives grew since Muizzu, who favored closer ties with China, was elected in 2023 after defeating India-friendly incumbent Ibrahim Mohamed Solih. Leading up to the election, Muizzu had promised to expel Indian soldiers deployed in the Maldives to help with humanitarian assistance. Last year New Delhi replaced dozens of its soldiers in the Maldives with civilian experts. Measure by Modi to promote tourism in India's Lakshadweep archipelago, off the southwestern coast of the Indian mainland, also sparked anger from Maldivians, who saw it as a move to lure Indian tourists away from their country. Indian celebrities then called for a tourism boycott to the Maldives. The dispute deepened when Muizzu visited China ahead of India in January last year, a move seen by New Delhi as a snub. On his return, Muizzu spelled out plans to rid his tiny nation of dependence on India for health facilities, medicines and import of staples. Relations started to improve after Muizzu attended Modi's swearing-in ceremony for a third five-year term. Muizzu has toned down his anti-Indian rhetoric, and official contacts with New Delhi have intensified as concerns grew about Maldives' economy. India has long been a critical provider of development assistance to the Maldives. Meanwhile, the Maldives joined China's Belt and Road Initiative in 2013 to build ports and highways and expand trade as well as China's influence across Asia, Africa, and Europe. Modi will attend the Maldives' 60th independence anniversary from being a British protectorate on Saturday.
