India-Maldives Relations
 
Why in news
Prime Minister Narendra Modi visited the Maldives from July 25 to 26, 2025, as the Guest of Honour for the Maldives' 60th Independence Day celebrations.
 
Key highlights of visit
 

• Historic Invitation and Visit: PM Modi was the first Indian Prime Minister to attend the Maldives' Independence Day and the first foreign head of government hosted by President Mohamed Muizzu during his presidency, underscoring a diplomatic reset after recent tensions.
• Bilateral Meetings: PM Modi held meetings with President Muizzu and his cabinet to review and renew the comprehensive India-Maldives partnership, focusing on economic, maritime, security, and environmental cooperation.
• Economic Support and Development Projects: India  announced a $565 million (approximately ₹4,850 crore) line of credit to fund infrastructure and development projects based on Maldivian priorities.

• Key projects inaugurated include-

•  4000 social housing units,
• the Greater Malé Connectivity Project,
• Addu Road Development Project,
• and redevelopment of Hanimaadhoo International Airport.

• Strategic and Maritime Partnership: The visit reinforced the “Vision for Comprehensive Economic and Maritime Security Partnership” adopted in 2024, highlighting cooperation in defense, maritime security, infrastructure, trade, and digital connectivity.
• Debt Relief and Trade Talks: India agreed to reduce Maldives’ annual debt repayment obligations by 40% and initiated negotiations for a free trade agreement, providing economic relief and facilitating trade relations.
• Symbolic Commemoration: Modi and Muizzu jointly released a commemorative postage stamp marking 60 years of diplomatic relations

• The stamps feature India’s Uru boat and Maldives’ Vadhu Dhoni, symbolizing shared maritime heritage and centuries-old Indian Ocean trade.
• Uru boat – A large wooden dhow handcrafted in the historic boatyards of Beypore, Kerala.
• Vadhu Dhoni  -- A traditional Maldivian fishing boat used for reef and coastal fishing

• Environmental and Health Initiatives: Modi participated in a tree plantation event under India’s "Ek Ped Maa Ke Naam" initiative and handed over two BHISHM Health Cubes to aid remote medical emergencies in Maldives.
• BHISHM Health Cubes gifted to Maldives: Portable Emergency Medical Units Each cube contains essential medicines, trauma care supplies, surgical tools, and advanced medical equipment, capable of providing emergency aid
• Expressed Mutual Trust: President Muizzu publicly praised India as Maldives' "closest and most trusted partner," highlighting deep cooperation across sectors including security, trade, healthcare, and education.

Period of Political Strain and Pragmatic Reset
 
Political Strain-

• "India Out" Campaign: In November 2023, Mohamed Muizzu was elected Maldivian President on an "India Out" platform, demanding the withdrawal of Indian military personnel stationed in Maldives. This campaign reflected nationalist sentiment and a tilt toward China.
• Pro-China Shift: After taking office, Muizzu prioritized visits to China and Turkey instead of India, signaling a departure from the prior tradition of close India ties. China elevated its strategic partnership with Maldives and signed numerous agreements, increasing its influence.
• Diplomatic Spats: In early 2024, tensions escalated when three Maldivian deputy ministers made derogatory remarks about Indian PM Narendra Modi over his visit promoting Lakshadweep as a tourist spot. India summoned the Maldivian ambassador, and the Maldives suspended the ministers, but the controversy sparked Indian social media boycott campaigns and a steep drop in Indian tourists to Maldives.
• Military Withdrawal: By May 2024, India withdrew its military personnel, replacing them with civilian technicians to operate India-donated aviation equipment, respecting Maldives' sovereignty concerns but maintaining operational cooperation.
• Economic and Strategic Risks: The diplomatic rift hurt tourism—a critical sector in Maldives—and raised concerns in India about China's growing influence in the Indian Ocean region via Maldives.

Pragmatic Reset-

• India’s Diplomatic Engagement and Patience: Despite the provocative "India Out" rhetoric and diplomatic strain under President Muizzu’s early tenure, India chose engagement over escalation. It maintained a long-term view by sending senior representatives to Maldives, engaging in frank dialogues, and avoiding public confrontations, which helped keep diplomatic channels open.
• Respect for Maldives’ Sovereignty and Security Sensitivities: When Muizzu demanded withdrawal of Indian military personnel, India complied by replacing troops with trained civilian technicians to continue essential aviation and surveillance functions, respecting Maldives' sovereignty while maintaining operational cooperation.
• Economic Support and Development Assistance: India increased development assistance substantially (e.g., Rs 600 crore in aid), extended major financial support including a $750 million currency swap, treasury bill rollovers, and unveiled a Rs 4,850 crore line of credit for infrastructure aligned with Maldivian priorities. This economic partnership helped Maldives address debt challenges and stave off a sovereign default.
• Strategic Partnership: Both countries adopted a “Vision for Comprehensive Economic and Maritime Security Partnership,” covering defence, infrastructure, trade, digital connectivity, and climate cooperation.
•  Acceleration of Key Infrastructure Projects: India focused on accelerating existing projects crucial to Maldives’ development, including the Hanimaadhoo International Airport, Greater Malé Connectivity Project, and harbor upgrades, reinforcing India's role as a trusted development partner.
• High-level Political Engagement: Prime Minister Narendra Modi’s visit in July 2025 as chief guest for Maldives’ 60th Independence Day was a landmark event signaling restored friendship and mutual trust.

Way Forward

• Sustained High-Level Dialogue: Both countries should institutionalize regular high-level political engagement to address concerns, consolidate gains, and keep diplomatic channels open.
• Inclusive Economic Partnership: Continued focus on infrastructure, trade, and developmental projects .
• Enhanced Maritime Security: Deepening cooperation on maritime security through joint patrols, intelligence sharing, and capacity building.
• Healthcare and Disaster Preparedness: Expanding initiatives like the gifting of BHISHM Health Cubes and further collaboration in public health, disaster relief, and capacity building.
• Balanced Foreign Policy: The Maldives should continue to pragmatically balance external partnerships and historical ties.
• People-to-People Ties: Strengthening cultural exchanges, educational linkages, and visa facilitation will nurture goodwill and deeper societal connections.

Through these approaches, India and the Maldives can forge a robust and future-oriented partnership that underpins economic progress, regional stability, and shared prosperity in the Indian Ocean region.
 

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