Latest news with #Muizzu
The Hindu
2 days ago
- Business
- The Hindu
With new airport terminal, Maldives eyes more visitors
'A pillar of economic independence' — that is what Maldivian President Mohamed Muizzu called the new terminal at the Velana International Airport near Male, while inaugurating it on June 26, 2025, the country's 60th Independence day. The launch ceremony was spectacular, with synchronised fireworks lighting up the sky — a fete that put the Maldives in the Guinness Book of World Records. Addressing a large crowd, President Muizzu spelled out the aspiration of the country of 4 lakh people, currently grappling with high external debt — it exceeded $8 billion 2024 — and its inevitable fiscal consequences. His administration is trying to tighten its fiscal policy, alongside a full-throttle push to tourism, the country's biggest foreign exchange earner that contributes 21 % to the GDP. The airport's new terminal will drive growth, particularly in tourism, as well as the broader economy, Mr. Muizzu noted optimistically as the Indian Ocean archipelago grapples with twin deficits and a daunting debt repayment schedule this year and next. The scenic country's policy makers have put all eggs in the tourism basket, and are fervently hoping that the new terminal will make a difference. Not just Maldivian policy makers, even international financial institutions see the new terminal as a likely game-changer. In its Maldives update in April 2025, the World Bank noted that the new terminal's completion would enable higher tourist arrivals, and lead to a projected economic growth of '5.2 % on average over the medium term. 'Thanks to the Maldives' strong tourism base, growth has held up well…the opening of airport terminal expansion would ease supply-side bottleneck for tourism and help sustain growth momentum,' an IMF said at the end of its February 2025 mission. For Maldivians, the airport terminal symbolises a long-held dream that has finally come true, after a decade marked by key political shifts and considerable economic strain stemming from high foreign debt, including to China and India. 'For over 20 years now, there has been talk in the Maldives about not having the right gateway. As a sought-after destination drawing affluent tourists, it is important to make a good first impression, and we finally have that now,' said Abdulla Ghiyas, Chairperson of the Maldives Marketing and Public Relations Corporation (MMPRC) or 'Visit Maldives' as the state-owned tourism promotion authority brands itself. The swanky, new terminal includes 47 check-in counters, six self-service kiosks, 20 departure immigration counters, six boarding gates, and 12 aerobridges, and aims to serve 7.5 million passengers annually, or over thrice its current capacity. The largest structure to be built in the Maldives, the new terminal's design showcases the Maldives's identity through traditional motifs and wave patterns. According to officials of the Maldives Airport Company Limited (MACL) and Tourism department, the facility has come up at a cost of $ 585 million, that the Muizzu administration raised through loans from the Saudi Fund for Development, the OPEC Fund for International Development, the Kuwait Fund for Arab Economic Development, and the Abu Dhabi Fund for Development, in addition to allocations in the national budget. Detractors contend that the airport terminal has come up after nearly a decade after it was envisaged, with three successive leaders attempting to take the project forward, while incurring higher costs. The terminal came into focus initially in the context of former President Abdulla Yameen abruptly terminating Indian infrastructure conglomerate GMR's contract to run the main airport of Maldives. The idea of a new terminal also fit into President Yameen's plans to expand the country's main airport with a $800-million Chinese loan, an initiative he launched in 2016. Despite sharp tensions among various political camps that make up the Maldives's ruling establishment, everyone agrees that the country desperately needed the new terminal, and see its recent launch is important for its economy. However, while admitting that it is 'crucial' for the Maldivian economy that the new airport terminal is fully operational soon, chairperson of the Opposition Maldivian Democratic Party Fayyaz Ismail described it a 'debt-laden, cost-overrun project' with years of delay. 'If the initial airport project awarded in 2010 had not been terminated on spurious grounds, it would have been opened in 2014, and our economy would have tripled by now without any debt to the nation. The debt related to the airport is nearly a third of our foreign debt,' he told The Hindu, referring to the contract awarded to GMR in 2010, during former President Mohamed Nasheed's time in office. The termination of the project, Mr. Ismail said, was the 'most stupid thing' a government did in recent times, blaming the country's current debt burden squarely on the move. President Yameen's 2012 decision reflected his hostility towards India, that would only grow in the following years, especially when he sought to challenge his successor Ibrahim Mohamed Solih's administration that pursued an 'India first' foreign policy. As Mr. Yameen stepped up his 'India Out' campaign, it eventually became a useful poll plank for incumbent President Muizzu, who rose to office in 2023. President Muizzu's first year in office saw a persisting strain in Maldives-India ties. But a year later, the relationship was reset, and evident in Prime Minister Narendra Modi's state visit to the island nation last month, on the occasion of its 60th anniversary of Independence. India's $ 400 million currency swap in 2024, and subsequent economic assistance was 'pivotal' for the country's economic stability, President Muizzu acknowledged during Mr. Modi's visit. Meanwhile, Maldives tourism officials said they hope Indian tourists will return to the island in large numbers, putting behind past tensions that sparked a loud 'Boycott Maldives' campaign in India. The call that went viral on Indian social media early in 2024, led to a sharp decline in numbers last year, but things are looking up now, according to Tourism sector representatives in the Maldives. Authorities have set an ambitious $ 5 billion target for tourism revenue this year. A 9 % uptick in arrivals has been recorded from January to June 2025, compared to the same period last year. The Maldives Monetary Authority, too, pointed 'robust arrivals' from China, the country's top source market, and the other markets in Europe. Those in India's tourism industry see PM Modi''s recent visit 'generating optimism' about increasing Indian tourist arrivals, as the Maldives aims to attract 300,000 Indian visitors in 2025. 'The Maldives government has been working to attract Indian tourists through various initiatives, including improving air connectivity, targeted marketing, and appointing actor Katrina Kaif as its brand ambassador,' said Jyoti Mayal, Chairperson, Tourism & Hospitality Skill Council and the former president of the Travel Agents Association of India. India currently ranks six among the Maldives's source markets. From January to June this year, a total of 66,501 Indian tourists visited the country. Through roadshows and other promotional efforts, including through young Maldivians' interest in Bollywood, authorities in Male are keen to build bridges. 'I believe numbers will come back, though it may take a bit longer, as the sentiments of the traveller have been hurt,' Ms. Mayal added. (The writer was invited by Visit Maldives for the inauguration of the new terminal at Velana International Airport)
The Hindu
01-08-2025
- Business
- The Hindu
Deep ties: on India-Maldives ties
Prime Minister Narendra Modi's visit to the Maldives last week, after an invitation by Maldives President Mohamed Muizzu to be a special guest for the country's 60th Independence Day, signalled the full return of relations to the closeness they held during the previous Ibrahim Solih government. Although the two leaders had not gotten off to the best start in 2023, after Mr. Muizzu's surprise win, backed by an 'India Out' campaign — this was followed by a 'Boycott Maldives' social media campaign in India — they have been on the mend for the past year. During Mr. Muizzu's 2024 state visit to India, India had announced measures including lines of credit and a currency swap arrangement to support the Maldives during its economic troubles. Mr. Muizzu reflected gratitude when he described India's role in the Maldives as 'pivotal' and Mr. Modi reciprocated the warmth. India announced a line of credit worth $565 million (₹4,850 crore) and reduced the annual debt burden for Maldives on previous Indian lines of credit by 40%. There was also the launch of India-Maldives Free Trade Agreement negotiations, which will be a significant driver of future engagement. There was the signing too of MoUs for cooperation in fisheries, meteorological sciences, digital solutions and pharma, as well as a digital and rupee-rufiyaa national currency payments agreement. Over the past six decades, India has cultivated a strong security partnership with the Maldives, including trilateral national security consultations with Sri Lanka, and it is significant that after Mr. Modi's visit, Mr. Muizzu welcomed Sri Lankan President Anura Kumara Dissanayake for a state visit. The Maldives visit was also a reaffirmation of the importance of India's 'Neighbourhood First' policy, at a time when Indian foreign policy is facing headwinds linked to the U.S.'s trade tariffs and the conflicts in Ukraine and Gaza. The conflict with Pakistan after the Pahalgam attacks, and tensions with Bangladesh have engaged the government's attention. New Delhi has also been preoccupied with reaching out to different countries, following Operation Sindoor, but did not send delegations to neighbouring countries. It is heartening that New Delhi is preparing to welcome Nepal Prime Minister K.P. Sharma Oli, who has not been invited to India since he took office a year ago. A commemorative stamp by the Maldives for its national day celebrations showed traditional Indian and Maldives boats, which Mr. Modi described as a reflection of India and the Maldives being not just neighbours 'but also fellow voyagers on a shared journey'. In a time of global economic turmoil, a closer engagement with the neighbours — one that shores up their economic needs and supports their plans for development where possible — is essential.
The Diplomat
31-07-2025
- Business
- The Diplomat
Bilateral Bonhomie During PM Modi's Visit to the Maldives
Hugs and handshakes are heartening. But India needs to ensure that 'India Out' campaigns do not re-emerge. After several months of flailing around in turbulent waters, the India-Maldives relationship is cruising again. Deft navigation on the part of the two governments has contributed to steadying the bilateral relationship. During Prime Minister Narendra Modi's visit to the Maldives on July 25-26, the two governments signed several important agreements covering debt repayment, fisheries, health, tourism, and digital payments. In addition to extending a new credit line of $565 million for development projects in the Maldives, India agreed to reduce its loan repayment burden from nearly $51 million annually to about $29 million — a 40 percent reduction. The visit also saw the start of talks on a free trade agreement. Modi and Maldivian President Mohamed Muizzu jointly inaugurated infrastructure projects; pledged cooperation on climate, disaster risk, and renewable energy; and reaffirmed commitment to a stronger economic and maritime partnership. Modi also handed over 3,300 social housing units and medical equipment. The depth and diversity of India-Maldivian cooperation were on full display during Modi's visit, signaling the return of a measure of calm in the bilateral engagement. India-Maldives ties have generally been warm. The two countries have engaged in robust economic and defense cooperation for decades. India has played a major role in building the Maldives' human and infrastructural capacity, and has been the first responder in times of political crisis, natural disasters, and health emergencies. However, relations soured off and on over the past decade. President Abdulla Yameen's authoritarian rule (2013-2018) and tilt toward China did not go down well in New Delhi. Ties frayed. After he was voted out of office, Yameen spearheaded an 'India Out' campaign to target the India-friendly Maldivian Democratic Party (MDP) government. Building on the momentum of Yameen's campaign, Muizzu made the eviction of Indian security personnel from the archipelago his main election plank. It helped propel him to the presidency in November 2023. As it turned out, Muizzu's call for the withdrawal of Indian military personnel was not just election rhetoric. He persisted with the demand for several months after his swearing-in, raising the issue in meetings with Modi and other Indian leaders and officials, and subsequently even issued a deadline for the pullout of Indian military personnel. Unlike previous Maldivian presidents who made India the destination of their first official visit, Muizzu headed to Turkiye and China. He signed 20 agreements with China in January 2024 and allowed a Chinese research ship, Xiang Yang Hong 3, to dock in the Maldives. Not surprisingly, it drew New Delhi's ire. Meanwhile, a war of words broke out on social media. When three deputy ministers in the Muizzu government described Modi in their posts as a 'clown, 'a terrorist,' and a 'puppet of Israel,' Modi's supporters hit back by calling on Indian tourists to boycott the Maldives. The online spat quickly escalated into a diplomatic row. Muizzu repeatedly provoked India in the early months of his presidency. In January 2024, on his return from Beijing, the Maldivian president said in a veiled reference to India that the Indian Ocean 'does not belong to a specific country.' 'We may be small but this doesn't give them [India] the license to bully us,' he said. Eighteen months after those anti-India jibes, Muizzu broke protocol to welcome Modi at the airport. His government rolled out the red carpet for the Indian leader and welcomed him with a 21-gun salute. Huge cutouts of Modi greeted him in Malé. Muizzu was effusive in his praise of Modi, describing him as a 'wonderful person who is very fond of building relationships between India's neighbors,' he said. He waxed eloquent on the 'very good relationship' between India and the Maldives 'that goes back centuries.' As for India's role in the Maldives, Muizzu said that 'India has helped develop Maldives in the past. And, nobody will doubt how India will be a very crucial partner in going forward.' Muizzu was not just humming a different tune but a different song. From shrill demands for 'India Out,' he has shifted to endorsing a close partnership with India. How did he get here? There are several reasons underlying this shift. First is the dire state of the Maldivian economy; the archipelago is struggling with a substantial budget deficit and dwindling foreign reserves. With China's support proving to be rather underwhelming – talks on loan restructuring initiated during Muizzu's Beijing visit in January 2024 have seen little progress so far – India's support has emerged critical. Second is the shift in India's approach to dealing with a smaller neighbor. Unlike in Bangladesh, where the ouster of a pro-India leader (Sheikh Hasina) in a mass uprising has seen India turn rather unfriendly to Bangladesh, in the case of the Maldives, India adopted an 'accommodative' approach. As Aditya Gowdara Shivamurthy, associate fellow at the New Delhi-based Observer Research Foundation, wrote recently, New Delhi 'understood domestic compulsions of Muizzu's demands [for India to pull out its military personnel stationed in the archipelago] and replaced its 76 troops with technicians in May 2024.' Despite Muizzu's repeated provocations, India continued to engage with the Maldives, choosing restraint rather than reprimand and rhetoric in dealing with this strategically located neighbor. The bilateral bonhomie on display at Malé during Modi's visit did not happen overnight. Since at least May last year, India and the Maldives have been engaging with each other not just at the highest levels but in a sustained manner. Muizzu's objections to India's presence, even military presence, lasted a few months into his presidency. But when he visited Delhi in October 2024, he put out the welcome mat for Indian military presence in the archipelago. Under the Vision Statement that India and the Maldives adopted during the Delhi visit, Muizzu agreed to allow India to open a consulate in Addu, the Maldives' southernmost atoll; seek Indian support on 'hydrographic matters;' and complete the military harbor at Uthuru Thila Falhu with India's assistance. The Muizzu government also agreed to India providing radar systems and 'support Maldives with provisioning of defense platforms and assets.' It was during Muizzu's visit to Delhi that bilateral relations were reset. At Malé, the relationship was steadied. Sections of the Indian media have interpreted the recent bonhomie as a sign of 'China Out, India In' in the Maldives. This is an excessively optimistic reading of the visit. China's shadow over the Maldives looms. It would be unrealistic on India's part to expect Malé not to do business with Beijing. China's presence in the Maldives is already substantial and given its interests in the Indian Ocean, Beijing will use its financial muscle to further expand its influence in the archipelago. To counter China, India will need to make better offers to Malé. The possibility of Maldivian politicians and parties initiating new 'India Out' campaigns cannot be ruled out. India will need to keep the Maldivian people on its side. India and the Maldives share strong social and cultural ties that go back centuries. India has been the preferred destination of Maldivians seeking better education and health facilities. It needs to build on its soft power in the Maldives. Importantly, it must ensure that its aid to Malé is not just about security and defense but directed to people-focused projects as well.
Hans India
30-07-2025
- Business
- Hans India
Charmed by PM Modi's 'diplomatic spell', Maldives and Lankan leaders give up anti-India stance
Colombo: Charmed by Prime Minister Narendra Modi's "diplomatic spell", Maldives President Mohamed Muizzu and Sri Lankan President Anura Dissanayake - two leaders who backed a strong anti-India policy before coming to power in their respective nations - now seem to have made a major shift in their approach towards New Delhi, the Lankan media cited on Wednesday. The observations were made during Dissanayake's ongoing July 28-30 State Visit to the Maldives which took place almost immediately after PM Modi's landmark visit to Male, last week. "With the end of Modi's visit to the Maldives, Sri Lanka's pro-China JVP leader, President Anura, has gone to the Maldives at the invitation of the Maldivian President. What happened to Anura, and to the JVP, is the same as what happened to the Maldivian President. They also showed a strong anti-India policy before coming to power," a report by Lankan media outlet Mawrata News stated. Last December, Dissanayake, while visiting India on what was his first official foreign visit since assuming office, had thanked India for its "immense support" during the unprecedented economic crisis and also assured Prime Minister Modi that he will not allow the island nation to be used in any way that is detrimental to the interest of India. On July 25, PM Modi arrived in Male on a two-day State Visit to participate in the Maldives' 60th Independence Day celebrations as the Guest of Honour. This was Prime Minister Modi's third visit to Maldives - he had visited the Indian Ocean archipelago in 2018 and 2019, earlier - and the first by a Head of State or Government to Maldives during the Presidency of Mohamed Muizzu which began in November 2023. In a special gesture, President Muizzu had welcomed PM Modi at the airport in Male as he arrived from the United Kingdom. Maldives Foreign Minister, Defence Minister, Finance Minister and Minister of Homeland Security were also present at the airport to welcome PM Modi. Breaking with tradition, Muizzu had not made India his first State Visit after assuming the presidency, signalling a clear shift in his foreign policy. He also permitted the Chinese research vessel Xiang Yang Hong 3 — perceived as a surveillance ship — to dock in its waters, raising Indian concerns about potential data collection by Chinese to support submarine operations in the region. However, Muizzu's Five-day State Visit to India in October - his second trip to the country in four months after having also attended the swearing-in ceremony of Prime Minister Modi - highlighted a significant diplomatic shift. Muizzu, who previously backed an "India Out" campaign in the Indian Ocean archipelago, now sought to navigate the complex relations while balancing the country's ties with China. This year already, in the first six months, New Delhi has seen nearly half a dozen ministerial level visits from the Maldives. External Affairs Minister (EAM) S Jaishankar's very first engagement in 2025 was with the Foreign Minister of Maldives. "Modi's view of Maldives was that of a younger brother who is angry with his older brother and would come back to him after the anger is over. Modi was right. Finally, the Maldivian President went to India to seek Modi's help in resolving the Maldivian economic crisis. Modi also forgot the old grudge and helped him," reported Mawrata News.
News18
30-07-2025
- Politics
- News18
‘Call Trump A Liar': Why PM Modi Has Done Well By Ignoring Rahul's Dare
Last Updated: To call upon Prime Minister Modi to publicly label the head of a partner nation—a key strategic ally—as a liar is shallow, inflammatory, and counterproductive Rahul Gandhi has set the Prime Minister a test. Speaking in the Lok Sabha, the Congress scion taunted the Prime Minister thus: 'If Modiji has even 50% of the courage that Indira Gandhi had, then clearly he must say in Parliament – Donald Trump (U.S. President) is lying…Trump you're a liar you did not make a ceasefire…" The taunt caparisons a shrill campaign launched by the Congress aimed at providing Modi some sort of gateway to redemption in the public sphere as if he needed one. For the past few weeks, the principal opposition party has sought to establish that Modi 'surrendered" India's strategic autonomy—that he did so by agreeing to a Donald Trump-dictated ceasefire just as India's armed forces had gained the upper hand over Pakistan's military during Op Sindoor. Trump has inadvertently helped the Congress party's cause by repeatedly crediting himself for 'brokering a truce" between his 'two great friends"— Modi and General Asim Munir. Nevertheless, to call upon Prime Minister Modi to publicly label the head of a partner nation—a key strategic ally—as a liar is shallow, inflammatory, and counterproductive. If not Rahul Gandhi himself, then surely his so-called seasoned advisors in the Congress party should recognise that performative diplomacy is, at best, a tone-deaf spectacle—and at worst, a ham-fisted ploy deployed by image-obsessed egomaniacs. History offers no shortage of such self-defeating pageants of brinkmanship. While a leader may gain short-term traction on the domestic front, such gambits almost always squander strategic capital abroad. Consider the example of Maldivian President Mohamed Muizzu. For a while, he sought to consolidate his domestic base by donning T-shirts emblazoned with the highly charged 'India Out' slogan. Encouraged by the domestic reception to this symbolic provocation, Muizzu escalated by pointedly declining an invitation to attend Modi's swearing-in ceremony after the 2024 Lok Sabha elections—a clear and highly personalised diplomatic snub. But the decision to trade goodwill with a reliable regional ally for applause at home came at a steep cost. India reviewed its aid and financial cooperation, and tourist inflow from India plummeted—crippling the economy of the heavily tourism-dependent island nation. With livelihoods at stake, the public mood shifted. Muizzu was soon accused by his own base of jeopardizing the country's economic prospects. Chastened, the once-combative President reversed course. Just two years after his ill-judged flex, Muizzu rolled out the red carpet for Modi. An even earlier generation of Indians will remember a similar episode of needless performative antipathy – this time from Washington. A taped conversation from June 1971 reveals that then-U.S. President Richard Nixon referred to Prime Minister Indira Gandhi as 'that old witch" and a 'cold-blooded b*tch." These remarks, shared privately with aides like Henry Kissinger, were more than casual misogyny; they seeped into U.S. foreign policy posture. India, already wary of American double standards, was alienated further. The resulting diplomatic chill pushed New Delhi into closer alignment with Moscow, altering the regional balance of power for decades. Today, India is at the high table of global diplomacy. The positions it adopts, the relationships it nurtures, and the battles it chooses to fight carry consequences not only for Indian citizens, but for the wider world. As CEO of the world's largest democracy, Prime Minister Modi cannot afford to lose sight of India's unique place in the global order—or the responsibility that comes with leading it. He has far more to gain, and much less to lose, by rejecting Rahul Gandhi's petulant test of performance politics. Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
