As Prime Minister Narendra Modi embarks on a state visit to the Maldives, the first since President Mohamed Muizzu assumed office in November 2023, the island nation's relationship with India is under the spotlight. Modi's visit, as the Guest of Honour for the Maldives' 60th Independence Day celebrations on July 26, marks a significant moment, coinciding with the 60th anniversary of diplomatic ties between New Delhi and Male.
Former Maldives President Mohamed Nasheed stated that the Maldives has always maintained an "India-first foreign policy". He noted that in the past, election cycles have caused the country's foreign policy to shift between strong pro-China and pro-India stances. However, he asserted that currently, across the spectrum of Maldivian politics, the approach is firmly "India-first".
Despite a period of strained relations after President Muizzu's election, partly attributed to his "India Out" campaign, both nations are actively working to strengthen their partnership. India has adopted a steady approach, engaging in extensive consultations and offering assistance to address the Maldives' economic challenges. This commitment is reflected in the invitation extended to President Muizzu to attend Modi's swearing-in ceremony for his third term as Prime Minister in June of last year.
India's "Neighbourhood First" policy remains a guiding principle in its engagement with the Maldives. As part of this approach, India has provided substantial development assistance and budgetary support to the Maldives. This includes emergency financial assistance, currency swap arrangements worth $400 million, and ₹3,000 crore to help the Maldives navigate a balance of payments crisis.
The upcoming visit will include the signing of several Memorandums of Understanding (MoUs) to further strengthen the development partnership. India has also committed to supporting the Maldives by ensuring the supply of essential medicines through HLL Lifecare Limited, connecting the Maldives to an efficient pharmaceutical supply chain.
India is one of the largest trade partners of the Maldives, with bilateral trade worth almost $500 million. Discussions are underway for a free trade agreement (FTA) and an investment treaty, with a particular focus on renewable energy and fisheries. India is also involved in executing several development projects in the Maldives, including the Greater Malé Connectivity Project, which will connect four islands.
Former President Nasheed lauded India's economic assistance, stating that it prevented the Maldives from defaulting on its debt. He anticipates that Prime Minister Modi's visit will further boost tourism.
India continues to support major infrastructure projects in the Maldives, including airport upgrades, fisheries projects, and social housing schemes. The country also provides defense training, conducts joint naval exercises, and supports maritime domain awareness in the region.
Vikram Misri, India's foreign secretary, has emphasized the importance of the Maldives as a partner in India's Neighborhood First policy and MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) vision. He noted the robust political relationship between the two countries, bolstered by regular high-level visits.
While the Maldives has also established a free trade agreement with China, the discussions for an FTA with India reflect a desire to diversify the Maldivian economy and strengthen economic ties with India.