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.
Published – August 02, 2025 12:10 am IST