Maldives President Mohamed Muizzu has expressed gratitude to India for its support in easing the island nation's debt repayment and has expressed hope for stronger ties and a free trade agreement with New Delhi. Speaking at the official Independence Day function in the Maldives on Friday, Muizzu commended his administration’s foreign policy, highlighting eight months of "diplomatic success," according to the Maldives President's Office.
President Muizzu thanked both India and China for their assistance in managing the Maldives' debt, which he said was crucial for the country's economic sovereignty. He also emphasized the need to alleviate local shortages of US dollars and noted that the Maldives government is negotiating currency swap agreements with both New Delhi and Beijing. The Maldives President announced ongoing negotiations for a Free Trade Agreement (FTA) with the United Kingdom and expressed hope for a similar agreement with India.
Muizzu's administration has adopted a conciliatory approach after a period of strained relations between the Maldives and India, which had led to a diplomatic row. Last month, President Muizzu attended the oath ceremony of Prime Minister Narendra Modi, who took office for a third consecutive term. Earlier this year, Muizzu sought debt relief measures for the Maldives' significant loans accrued over consecutive governments. He affirmed that India would continue to be the Maldives' "closest ally," emphasizing there was no question about it.
As of the end of last year, the Maldives owed India 6.2 billion Maldivian Rufiyaa, according to Maldives-based The Edition. The International Monetary Fund (IMF) has warned that the Maldives faces a high risk of debt distress without significant policy changes. President Muizzu had previously displayed 'anti-India' rhetoric, campaigning on an 'India Out' platform, which included calls for the removal of Indian troops from the Maldives. Since taking office, he has taken steps that have diverged from traditional India-Maldives ties.
Muizzu did not follow the long-standing tradition of making his first official visit to India, instead visiting Turkey and China. During his China visit, the two countries elevated their ties to a comprehensive strategic cooperative partnership and signed around 20 agreements. In December, the Maldives announced it would not renew the Hydrographic Survey agreement with India. The Muizzu government later requested India to withdraw its troops, which was completed in May this year. Maldives Defence Minister Ghassan Maumoon acknowledged that the country’s defence forces were capable of operating the three aircraft donated by India.
Tensions between New Delhi and Male heightened after three Maldivian deputy ministers made derogatory comments about Prime Minister Narendra Modi following his visit to Lakshadweep, where he called for the development of the Indian island cluster as a beach tourism destination. The incident led to a major diplomatic row, with New Delhi summoning the Maldivian envoy and lodging a strong protest. The three deputy ministers were suspended and remain under suspension with pay. Data from the Maldives Tourism Ministry showed a 33 percent drop in the number of Indian tourists visiting the Maldives earlier this year compared to the previous year.
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