Maldives President Mohammed Muizzu: Maldives President Mohamed Muizzu visited India this week. It is being said that he has come seeking a bailout because the island nation is wracked by mounting economic crisis amidst fears of defaulting on debt. When India’s archipelago’s former powerful friend and strategic benefactor was at odds with the island nation in recent years, today’s visit marked a crucial crossroads: Maldives President Mohammed Muizzu wants to rebuild ties with the giant neighbor and also win a much-needed bail-out.
Economic Crisis and Bailout
The Maldives, said to be one of the greatest tourism paradise destinations around the globe, is fighting against an acute economic crisis, having limited foreign exchange reserves and a mounting debt. At the end of September, the country’s reserves measured a lowly $440 million, or only enough to cover imports for one-and-a-half months. This puts it at risk of default, global credit agency Moody’s downgrading the Maldives’ credit rating and exposing the sharp rise in default risks.
An Indian bailout would help swell the foreign currency reserves in the Maldives, which would be much-needed relief. India has been the biggest partner of the Maldives, where she always found support, especially in vital areas such as food supply infrastructure and health care. Since the tourism industry of the Maldives largely depends upon tourism, which is badly impacted by the slowdown of the whole world and reduced tourist inflow, the necessity for financial aid in this respect is quite urgent.
Maldives President Mohammed Muizzu Improving Relations With India
Talking to the Times of India, Maldives President Mohammed Muizzu hoped that diplomatic relations with India would go better. “This historic relationship is intertwined like the roots of a tree, built on centuries of exchanges and values shared. Relations between the Maldives and India have always been strong, and I am confident this visit will further strengthen it”, he noted, in his interview with the Times of India. “Indians have always been welcome in the Maldives,” he added.
“In these globally challenging times, with regional wars threatening the security of all countries, it is vital to foster these collaborations, especially the security of the Indian Ocean Region. And I can confidently say Maldives and India now have a better understanding of each other’s priorities and concerns. What I did is what the people of Maldives asked from me”, he has noted.
He underlined the fact that the centuries-old relationship between the two nations is something developed based on mutual values and respect. Simultaneously, however, he said national interests – especially defense-related ones – need to be given more priority but clarified that expulsions of Indian military officials from the Maldives should not be read as a decline in defense cooperation.
The visit of Muizzu assumes importance, while the two countries have only lately resumed normalized relations. During the campaign, he had portrayed the ‘India Out’ policy and promised to lower Delhi‘s influence over the archipelago. However, at this moment, apparently by dictates of the economic crisis, the Maldives has forced Muizzu to take a rollback from his election promise, as the country cannot afford to ignore its neighbor.
Defense Cooperation and the India-China Dynamic
One of the key areas of friction in the recent past has been the Indian security forces in the Maldives. Last month, Muizzu’s government had given an ultimatum to India that it remove some 80 personnel that it had stationed in the country. India had sent these troops to operate two rescue helicopters and a Dornier aircraft the Maldives had received as part of its contribution from India years ago. Eventually, both countries could agree to replace the Indian military personnel with civilian technical staff who could operate the equipment. It was a compromise to see the continuation of defense cooperation that started dealing with domestic political concerns in the Maldives.
The Muizzu government revoked an agreement with India concluded by the previous administration on hydrographic surveys about the mapping of Maldivian territorial waters. The acts indicated a retreat from India and rapprochement with other world powers, particularly China.
His much closer ties to China have also proved somewhat controversial. His first official trips when he visited Turkey and China before India were perceived as no less than a snub to Delhi. Then, when Muizzu visited Beijing in January, it further signaled his intention to move closer to China, which has itself been investing in Maldivian infrastructure projects.
Diplomatic Controversies Addressed
The relations between India and the Maldives had further strained during the earlier part of the year when three officials of the country passed derogatory remarks about Indian Prime Minister Narendra Modi referring to him as a “clown,” a “terrorist,” and a “puppet of Israel.” These comments on social media stirred a storm of protests in India calling for a boycott of the Maldives. The Maldivian government reacted by suspending the officials and clarifying that the remarks did not represent the views of the government.
Reflecting on the backlash of the statement Muizzu said, “We might be small, but that does not give you the license to bully us.” As the fine line marks the dilemma of keeping national pride and appeasing its much bigger neighbor’s sensitivities, it underlines how Muizzu needs to tread when handling relations with India without losing domestic political support.
Maldives President Mohammed Muizzu’s Pragmatic Approach to India
So, despite all the controversies in the past, Muizzu seems to have learned that he cannot antagonize India. The economic interests of both countries are attached, and Indian tourists are one of the prime streams of income in the Maldives. In fact, in the last year alone, the number of Indian tourists that visited the Maldives decreased by 50,000, which resulted in a loss of about $150 million.
Muizzu’s visit to India is a very critical step toward rectifying diplomatic ties and assuring economic stability. For India, this would be an end of welcome kind, especially after the recent political shift in the region where governments friendly to India were being ousted from neighboring countries like Bangladesh and Nepal.
While Muizzu is proceeding to import aid from India, he has to ensure that the playing field of the influencing forces between China and India remains leveled. His pragmatic approach of engaging with India, against the earlier antagonism, reflects a growing recognition that a future in this model of strong relations holds between Maldives and this particular neighbor.
Such a visit would well usher a new chapter to India-Maldives relations, wherein both countries need to navigate the complex geopolitics of this Indian Ocean region while mulling addressing urgent economic and security challenges.