India Maldives Relations
Geopolitical shifts and economic factors significantly influence the Maldives' alignment with India and China, leading to dynamic shifts in its foreign policy.
Initial Pro-China Tilt and "India Out" Campaign:
President Mohamed Muizzu came to power on an "India Out" campaign, which advocated for the reduction or removal of Indian influence, particularly military presence, in the Maldives.
His early tenure was marked by a "pro-China tilt," including a state visit to Beijing, agreements for Chinese military assistance, and bypassing India in initial diplomatic engagements. This demonstrated an intent to reduce Indian influence and build closer ties with China.
Economic Realities Driving a Shift Back Towards India:
The primary driver for Muizzu's apparent "pivot" back towards India is a "pragmatic recognition of Maldives’ geographic and economic realities".
The Maldivian economy faces "severe stress with a substantial budget deficit and dwindling foreign reserves," making India's support pivotal for stabilizing its finances and avoiding potential economic default.
India remains "indispensable for trade, connectivity, and tourism" for the Maldives. India has consistently been the top tourist market for the Maldives from 2021 to 2023.
India has offered significant financial incentives and assistance, including a fresh USD 565 million (approximately MVR 5,000 crore) Line of Credit for infrastructure development, extended for the first time in Indian Rupee.
India's Diplomatic and Strategic Partnership:
India Out Campaign
Despite the "India Out" rhetoric and derogatory remarks from some Maldivian ministers, India maintained composure, choosing engagement over escalation.
This included PM Modi meeting Muizzu at COP28 and addressing concerns by replacing Indian military personnel with HAL technicians, thus avoiding a severing of strategic ties.
India as First Responder
India's consistent "first responder" role in crises (such as the 1988 coup attempt, 2004 Tsunami, 2014 Malé water crisis, and COVID-19 pandemic) has reinforced trust and strengthened bilateral relations.
Significant strategic Importance to India
The Maldives holds "significant strategic importance to India" due to its proximity to India's west coast and its location at the hub of commercial sea-lanes in the Indian Ocean (particularly the 8° N and 1 ½° N channels).
India's Security Interest
A stable and secure Maldives is "vital for India’s own security interests" and contributes to maintaining safety and security in the Indian Ocean Region (IOR) under India's SAGAR vision.
Conterbalanc to China
A strong India-Maldives partnership acts as a "counterbalance" to China's increasing footprint in the IOR, safeguarding Indian interests and ensuring regional stability.
Joint Operations and Training
India consistently provides defence cooperation, including the largest number of training opportunities for the Maldives National Defence Force (MNDF), meeting around 70% of their defence training requirements, and gifting equipment like 72 operational and utility vehicles. India has also financially assisted the construction of the new Ministry of Defence Headquarters in Malé.
In summary, while geopolitical shifts initially saw the Maldives leaning towards China, internal economic challenges and India's sustained, pragmatic diplomatic engagement coupled with crucial financial and developmental assistance have influenced a significant recalibration, moving the Maldives back towards a strengthened partnership with India.
India's defense and development cooperation with the Maldives has a long history, characterized by geographical proximity, cultural ties, and shared strategic interests in the Indian Ocean Region (IOR).
Historical Evolution of Cooperation
The formal bilateral engagement between India and the Maldives began swiftly after Maldives gained independence in 1965, with India being among the first countries to recognize and establish diplomatic relations.
A watershed moment in the relationship was Operation Cactus in November 1988, where India swiftly intervened militarily at the Maldives' request to thwart a coup attempt. This intervention highlighted India's commitment to Maldivian security and sovereignty and fostered long-term trust, especially with the immediate withdrawal of Indian troops once they were no longer required.
India has consistently acted as a "first responder" to crises in the Maldives, providing rapid and comprehensive assistance during events such as the 2004 Tsunami, the 2014 Malé water crisis, and the COVID-19 pandemic, further reinforcing its credentials as a reliable partner.
Defense cooperation was formalized with the signing of an 'Agreement on Cooperation in Defence' in 2008, which included provisions for training and joint exercises.
This was followed by a Comprehensive Action Plan for Defence in April 2016 to consolidate the partnership. Annual Defence Cooperation Dialogues were initiated in July 2016.
The presidency of Ibrahim Mohamed Solih (2018-2023) ushered in an era of renewed closeness with India, as he prioritized an 'India-First' policy. During this period, Prime Minister Narendra Modi attended President Solih's inauguration, and significant financial assistance packages were announced, including a USD 1.4 billion package in 2018 and an additional USD 100 million Line of Credit in 2022.
Various agreements on development assistance, connectivity, and maritime security were signed, and the Composite Training Centre and Coastal Radar System for MNDF were jointly inaugurated in 2019.
More recently, despite President Mohamed Muizzu having risen to power on an "India Out" campaign and initially exhibiting a "pro-China tilt," there has been a significant diplomatic turnaround.
India maintained composure and chose engagement over escalation, leading to a recalibration of ties driven by the Maldives' economic realities and India's pragmatic diplomacy. President Muizzu has since called India a "trusted friend" and publicly affirmed that "Maldives will not do anything that would harm India’s security interests".
This shift is underscored by recent high-level visits, including President Muizzu's participation in PM Modi's swearing-in ceremony in June 2024 and his state visit to India in October 2024, followed by PM Modi's official state visit to the Maldives in July 2025.
Key Elements of Cooperation
India's cooperation with the Maldives spans both defense and development, aimed at enhancing national capabilities and fostering regional stability.
Defense and Security Cooperation
The Maldives National Defence Force (MNDF) is constitutionally mandated to safeguard the nation’s sovereignty, protect citizens, and provide assistance during disasters and maritime incidents, including combating maritime crimes and protecting the Exclusive Economic Zone (EEZ). India significantly contributes to strengthening these capabilities:
Capacity Building and Training:
India provides the largest number of training opportunities for MNDF, meeting around 70% of their defense training requirements, with over 1500 MNDF trainees trained in India over the past decade in various defense institutions. MNDF personnel also participate in joint activities with Indian Armed Forces, such as joint EEZ patrols, anti-narco operations, search and rescue (SAR) missions, and Humanitarian Assistance and Disaster Relief (HADR) exercises.
Hardware and Infrastructure:
India recently gifted a total of 72 vehicles to the MNDF on July 25, 2025, during Prime Minister Modi's visit.
The new Ministry of Defence Headquarters in Malé was inaugurated during PM Modi's visit, constructed with India's financial assistance.
Other key defense projects include the Composite Training Centre (CTC) for MNDF and a Coastal Radar System (CRS), which were jointly inaugurated in 2019. The construction of the “Ekatha” MNDF harbour is also a significant project.
India has provided air assets for air surveillance, medical evacuation (MEDEVAC), and SAR operations, along with medical equipment and a team of medical specialists serving at MNDF’s Senahiya Hospital in Malé.
Joint Exercises:
The two nations regularly hold major joint exercises, including bilateral exercises "Ekuverin" and "Ekatha," and the trilateral exercise "Dosti" (which also includes Sri Lanka, with Bangladesh as an observer in February 2024).
Strategic Importance:
The Maldives' location at the hub of commercial sea-lanes in the Indian Ocean, particularly the 8° N and 1 ½° N channels, gives it significant strategic importance to India's maritime security calculus.
Development and Economic Cooperation:
India is a crucial development partner and plays a significant role in the Maldives' socio-economic development through extensive financial, infrastructure, trade, and capacity-building initiatives.
Financial Assistance:
During PM Modi's July 2025 visit, India announced a fresh USD 565 million (approximately INR 4,850 crore) Line of Credit (LoC) for infrastructure development, notable as it is the first time such credit is extended in Indian Rupee
An agreement was also signed to reduce Maldives' annual debt repayment burden by 40% for an USD 800 million loan, meaning it will now pay USD 29 million annually instead of USD 51 million.
Previous financial commitments include a USD 1.4 billion financial assistance package in 2018 (including budgetary support, T-bills subscription, and currency swaps) and an additional USD 100 million LoC in 2022. India has also provided financial assistance through SBI subscribing to Maldives’ Government Domestic T-bonds at zero-cost.
Key Development Projects:
Housing:
Handover of 3,300 social housing units in Hulhumale under India's Buyers' Credit facilities.
Water and Sanitation:
Improvement of water supply and sewerage facilities in 34 islands, with 28 handed over to the Maldivian government.
Connectivity and Infrastructure:
The "Greater Male Connectivity Project" (GMCP), connecting Malé to Villingili, Gulhifalhu, and Thilafushi islands via bridges, causeways, and roads, is funded through a separate USD 400 million LoC and USD 100 million grant. Other projects include roads and drainage systems in Addu City, Addu Reclamation and Shore Protection Project, and airport redevelopment in Hanimaadhoo and Gan.
Community Development:
65 High Impact Community Development Projects (HICDPs) are underway, focusing on community centers, youth centers, coastal protection, and street lighting, with six inaugurated during PM Modi's recent visit.
Fisheries:
Expansion of Maldives Industrial Fisheries Company Limited (MIFCO) facilities and facilitation of duty-free tuna exports to India
Trade Relations:
India and Maldives signed a trade agreement in 1981, providing for essential commodities export, with approved quantities for 2024-25 being the highest since its inception. Bilateral trade crossed the USD 500 million mark in 2022 and stood at USD 548 million in 2023. Negotiations for a Free Trade Agreement (FTA) have been initiated. Visa-free entry for Indians for business purposes has also been implemented.
Digital Cooperation:
An agreement was signed to adopt UPI (Unified Payments Interface) in the Maldives and share successful digital solutions.
Tourism:
India has been the top tourist market for the Maldives from 2021 to 2023, and discussions are ongoing regarding starting direct flights to boost tourism further.
Human Resource Development:
India offers a substantial number of ICCR scholarships and ITEC (Indian Technical and Economic Cooperation) training slots to Maldivian youth, which were increased from 200 to 300 for 2024-25. Over 3300 Maldivians have received in-person training in India since January 2019, with more than 1700 utilizing virtual training slots. MoUs have been signed for capacity building across various sectors, including civil services, customs, parliamentary cooperation, judicial services, election commission, and police.
Consular Matters:
There is a significant Indian expatriate community in the Maldives (approx. 30,000), mainly in health and education sectors. Agreements exist for visa arrangements, including visa-free entry for tourism, medical, and business purposes, and for diplomatic/official passports.
India's "Neighbourhood First" policy is a foreign policy initiative designed to strengthen relations and cooperation with its immediate neighbors, with the aim of bringing stability and prosperity to the Indian Ocean Region (IOR). The Maldives holds a special and significant place within this policy.
India's "Neighbourhood First" policy addresses the Maldives' strategic importance and security concerns through a multi-faceted approach, recognizing the island nation's critical geopolitical position:
Maldives' Strategic Importance to India:
Geographical Proximity
The Maldives is located barely 70 nautical miles from Minicoy and 300 nautical miles from India’s West coast.
Commercial Sea-Lanes Hub
It is situated at the hub of commercial sea-lanes running through the Indian Ocean, specifically the 8° N and 1 ½° N channels, which imbues it with significant strategic importance for India.
Maritime Security Calculus
The Maldives is a key element in India's maritime security calculus, and a stable and secure Maldives is considered vital for India's own security interests. Both nations are crucial players in maintaining safety and security in the IOR, contributing to India's SAGAR (Security and Growth for All in the Region) vision. This vision was enhanced to MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) during PM Modi's visit to Mauritius.
Addressing Security Concerns and Enhancing Capabilities:
"First Responder" Role: India has consistently demonstrated its role as the "first responder" to crises in the Maldives. This includes swift assistance during the 1988 coup attempt (Operation Cactus), the 2004 Tsunami, the 2014 Malé water crisis, and the COVID-19 pandemic, which has built trust and reinforced India's credentials.
Defence Cooperation and Capacity Building:
India provides the largest number of training opportunities for the Maldives National Defence Force (MNDF), meeting approximately 70% of their defence training requirements. Over the past decade, more than 1500 MNDF trainees have received training in India.
The MNDF participates in various joint activities with the Indian Armed Forces, such as joint Exclusive Economic Zone (EEZ) patrols, anti-narcotics operations, Search and Rescue (SAR) missions, and joint exercises like "Ekuverin," "Ekatha," and the trilateral "Dosti" (which includes Sri Lanka, with Bangladesh as an observer in February 2024).
India has provided air assets for air surveillance, medical evacuations (MEDEVAC), and SAR operations, and a team of medical specialists serves at MNDF’s Senahiya Hospital in Malé.
As part of ongoing support, India recently gifted 72 vehicles to the MNDF on July 25, 2025, during Prime Minister Narendra Modi's official state visit to the Maldives. This consignment included 27-seater buses, pickup trucks, mini-vans, lorries, tractors, tipper dump trucks, backhoe loaders, cranes, mini excavators, and excavators, all aimed at bolstering the MNDF's operational readiness and logistical capabilities.
India has also supported infrastructure projects for the MNDF, including the Composite Training Centre (CTC), Coastal Radar System (CRS), and the construction of the new Ministry of Defence Headquarters in Malé (inaugurated with Indian financial assistance).
Annual Defence Cooperation Dialogues are held to institutionalize this partnership.
Counterbalancing External Influence:
A strong India-Maldives partnership acts as a counterbalance as China increases its footprint in the Indian Ocean Region, safeguarding Indian interests and ensuring regional stability.
Pragmatic Diplomacy Amidst Challenges:
Despite the initial "India Out" campaign led by President Mohamed Muizzu, India maintained composure and chose engagement over escalation.
In summary, India's defense and development cooperation with the Maldives is deep-rooted, strategically vital, and continually adapting to geopolitical shifts and internal dynamics, demonstrating a commitment to supporting the Maldives' security, stability, and socio-economic progress.
Post a Comment