From 'India Out' to red carpet for Modi: How Delhi turned Maldives around

About two years ago, when Mohamed Muizzu defeated Ibrahim Mohamed Solih of the Maldivian Democratic Party (MDP) to become the President of the Maldives, the prospect of diplomatic warmth between him and Prime Minister Narendra Modi, such as seen on Friday, seemed improbable. Muizzu's "India Out" campaign had strained ties with New Delhi. But in less than two years, the Maldivian President, in a rare break from protocol, made a grand gesture by personally receiving Prime Minister Modi upon his arrival in Male.

Political observers said the "hug" between the two leaders symbolised a reset in the strained ties. Some analysts also added that Muizzu may be "two-timing" by also leaning towards China. Still, the red carpet treatment and the 21-gun salute for PM Modi were no ordinary gestures, especially amid strained ties for about two years.

This development underscores India's understated diplomacy that constantly provided support to the Maldives despite its hostile approach towards India under Muizzu.

MUIZZU'S DEMAND TO REMOVE INDIAN TROOPS FROM MALDIVES

The issue dates back to 2023, when Muizzu demanded the withdrawal of approximately 90 Indian military personnel stationed in the Maldives for medical evacuations and maritime surveillance, framing their presence as an infringement on the Maldives' sovereignty.

Muizzu's pivot towards China, including a state visit in January 2024 and the signing of 20 MoUs to deepen bilateral ties, raised concerns in New Delhi about a potential strategic shift in the Indian Ocean region.

The Maldives, under Muizzu, inked a pact with China for "non-lethal" weapons at no cost. Beijing also agreed to train Maldivian soldiers – another signal of the island nation distancing itself from India, which previously, along with the US, conducted such training.

India complied by withdrawing its military personnel, and did not sever ties with the Maldives. Instead, it continued, and even expanded, its development assistance and aid to the island nation.

In fact, following the withdrawal, India replaced its personnel with civilian technical staff from Hindustan Aeronautics Limited to operate two helicopters and a Dornier aircraft gifted to the Maldives.

INDIA EXTENDED FINANCIAL AID TO MUIZZU GOVERNMENT

Over the following months, this continued support bore fruit, contributing to what now appears to be a resetting of ties.

Just about a week after withdrawing the troops, in May 2024, India extended vital budgetary support by rolling over a $50 million Treasury Bill for an additional year through the State Bank of India in Male, helping the Maldives manage its fiscal challenges.

Maldivian Foreign Minister Moosa Zameer publicly thanked India for the gesture, emphasising the longstanding friendship between the two nations.

In October 2024, India provided a $400 million emergency financial package and a Rs 3,000 crore (approximately $360 million) currency swap agreement to stabilise the Maldivian economy, which was under strain from a high debt-to-GDP ratio and maturing debts.

India also agreed to explore debt relief measures for the Maldives’ $400.9 million debt to India, as requested by Muizzu.

The support didn't end there. In 2025, India increased its aid to the Maldives by 28%, allocating Rs 600 crore to support economic stability and development projects, signalling a renewed commitment to bilateral ties.

MALDIVES SAW PROMOTION OF LAKSHADWEEP AS A THREAT

However, India's promotion of Lakshadweep as an alternative tourist destination, urging citizens to visit the western archipelago, was perceived in the Maldives, which has been a favourite destination for Indian celebrities, challenge its tourism dector.

Prime Minister Modi in January last year posted a photo of himself from a Lakshadweep beach.

Some Indians might have cancelled their Maldives plan, but the island nation continued to feature in the social media posts of Indian celebrities.

INDIA FUNDING CRITICAL INFRA PROJECTS IN MALDIVES

Despite the pushback on the tourism front, India continued funding critical infrastructure projects in the Maldives, including the Greater Male Connectivity Project, which aims to enhance economic mobility by connecting islands.

The $500-million project, funded through a $100-million grant and a $400-million line of credit from India, is constructing a 6.74-km bridge and causeway network to connect the capital, Male, with three neighbouring islands – Villingili, Gulhifalhu, and Thilafushi – enhancing connectivity for nearly half of the Maldivian population.

India's other investments in the Maldives include housing, sanitation, clean energy installations, and capacity-building facilities.

So, the welcome extended to PM Modi in Male was not a sudden thaw. It was a result of India's quiet and consistent diplomacy which endured even as the Maldives tilted towards China.

Despite provocations and shifting allegiances, India chose engagement over escalation. Now, the geopolitical tides have again shifted in the strategic Indian Ocean Region.

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