Debt crisis pushes Maldives on backfoot

The first bilateral official visit to India by Maldivian Foreign Minister, Moosa Zameeron last week, in the backdrop of strained ties with New Delhi, especially after Maldives president Mohammed Muizzu's party came to power, shows signs of thaw in the frosty relations between the two nations.

Assuming the post on November 17 last year, it was Muizzu, who broke the tradition of Maldivian Presidents making their first overseas trip to India. Rather he made his first official visit to Turkey and his first diplomatic visit to China.

Now, instead of visiting India himself, Muizzu has sent his Foreign Minister Zameer to New Delhi. Zameer’s visit comes at a time when Muizzu’s government is under pressure to improve ties with India despite its close ties with China.

The Maldives Foreign Minister becomes the first government representative to visit India after three deputy ministers of the island nation rubbed Indian authorities the wrong way by making adverse comments on India and Prime Minister Narendra Modi.

Preceding Zameer’s India visit, Maldivian Tourism Minister Ibrahim Faisal emphasised on the historical relations between his country and India and appealed Indians to be “part of Maldives’ tourism”.

He went on to say that his country always promoted peace and a friendly environment and his people and the government would give a “warm welcome to Indian arrivals”. It seems like there has been a 360 degree change in stance of Muizzu administration regarding India.

India and Maldives shared ethnic, linguistic, cultural, religious and commercial links, steeped in antiquity and enjoyed close, cordial and multi-dimensional relations. India was among the first to recognise Maldives after its independence in 1965 and to establish diplomatic relations with the country.

Despite being the smallest Asian country with a land area, Maldives is one of the world’s most geographically dispersed countries. Its strategic location defines the geo-strategic importance of Maldives far beyond its physical size.

Through the decades, India has rushed emergency assistance to the Maldives, whenever sought. In 1988, when armed mercenaries attempted a coup against President Maumoon Abdul Gayoom, India sent paratroopers and Navy vessels and restored the legitimate leadership under Operation Cactus.

Maldives holds strategic importance for India under the Modi governments ‘Neighbourhood First policy’ due to its location in the Indian Ocean. However, the relations between the two countries were strained under the pro-China regime of their former President Abdulla Yameen. The Indo-Maldive relationship further strayed with Mohammed Muizzu’s party having come to power due to change in its political and economic perception. Muizzu, like many other small and economically weak countries, got swayed with China’s economic ‘Bully’. Maldives has emerged as an important ‘pearl’ in China’s “String of Pearls”.

But perhaps he misunderstood the importance of the presence of a growing superpower next door which was readily available at any crisis as well as undertaking many development projects along with rising tourism.

With the breaking of the cordial relation and mockery towards PM Modi, many developments and tourism activities have taken down trend.

Scores of Indians, including multiple celebrities, cancelled their reservations and dropped plans to visit Maldives. The tourism arrival statistics reflected how from being a top visitor country, India’s position went down from topmost to sixth position after January.

According to a report, the number of tourist arrivals from India declined by 42 per cent in the first four months of this year compared to the first four months of last year.

In March this year, only 7,668 Indians visited the Maldives, as compared to a total of 16,141 tourists during the same month in 2023. Similarly, April saw 8,712 Indians visiting the Maldives. The number was 18,662 in April 2023. This consistent dip in tourist arrivals from India has resulted in a significant decline in revenue for the Maldives, where tourism is the largest industry, accounting for 28% of its GDP.

How long can Muizzu play with rhetoric and political games? Ultimately, it’s all about money.  Muizzu’s tilt towards China is coming in the way of the welfare of his people. Maldivian government has a huge mountain of Indian debt to climb. Maldives owed $400.9 million to India at the end of last year and its revenue has been hit. That’s why Muizzu is trying to strike a reconciliatory tone by calling India the country’s closest ally and urging New Delhi to provide debt relief.

The Maldivian President and the heads of all other nations indulging in anti-India rhetoric under Chinese influence, should know that they are falling into a trap that will spell doom for their country. There are multiple examples of countries in the Chinese debt trap, including Maldives itself. The International Monetary Fund has also flagged Maldives’ debt crisis after more borrowings from China. Hence, friendship with India will be more beneficial than China.

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