Is India-Maldives relations back on track? Tourism boost, UPI and civil training on cards: A recap of diplomatic ties

Nine months ago, the ties between India and Maldives--the two neighbouring nations--went through a rough patch. They engaged in a fierce diplomatic row following Prime Minister Narendra Modi's visit to the Lakshadweep islands and the appointment of 'pro-China' Mohamed Muizzu as the President of Maldives.

External Affairs Minister S Jaishankar recently concluded a visit to Maldives. Following the visit, leaders described the ties between the two countries as the "strongest" bond and "modern" ties.

Later, on Independence Day, Mohamed Muizzu extended "heartfelt congratulations" to India on Thursday, August 15. Prime Minister Narendra Modi thanked Mohamed Muizzu, saying, "India considers Maldives a valued friend, and our nations will keep working together for the benefit of our people."

Is the India-Maldives relations past its rough patch? Let's take a cruise through the India-Maldives relationship over this year:

For the unversed, many Maldivian MPs had construed PM Modi's promotion of Lakshadweep in January as the next tourist destination as a way to woo Indian tourists away from the Maldives islands. Notably, tourism from India contributed the most to Maldives' tourism revenue. As Maldivian MPs used derogatory words against PM Modi, "#boycottMaldives" trended in India.

Following this uproar, the Maldivian President requested that India withdraw its troops, further fueling tensions between the two countries. During that time, Muizzu also announced agreements with the Chinese government and "remarked that the Government would end its dependence on one country for imported staple foods such as rice, sugar, and flour" – in a purported reference to India.

India has since slipped to the sixth spot on Maldives' Top 10 tourism market chart. India used to be No. 1 till last year. China has now secured the top spot.

Cut to August 2024: Here's how India and Maldives have been working on their ties:

1. Maldives trying to boost its tourism from India

A. On June 30, the Maldivian media quoted Minister of Tourism Ibrahim Faisal as saying the Maldives' government's aim of positioning "India among the top three tourist arrival countries by year-end". The report added the "Welcome India roadshow" started in New Delhi, continued in Mumbai on August 1, and concluded in Bengaluru on August 3.

B. Maldives Tourism Minister Faisal had also said that he intends to hold an investment forum in India, aiming to lure investors in the neighbouring country.

C. As per a report on August 12, Faisal revealed that efforts are underway to increase the number of flights between the Maldives and India. He said he held discussions with several ministers in India on the matter. The Maldivian minister also suggested increasing the frequency of scheduled flights by existing airlines operating between the Maldives and India.

2. Maldives, India sign MoU during Jaishankar's visit

A. E-commerce sector: According to a report on August 10, the Maldives signed a Memorandum of Understanding (MoU) with NIPI International Payments Limited (NIPL), a subsidiary of the National Payments Corporation of India (NPCI), to advance the nation's e-commerce sector.

The PSM news reported that a digital payment system will be developed as part of the deal "to offer easy and secure remittance services, promote access to services for the underprivileged, and facilitate economic activities".

B. Training of civil service employees: The Maldives and India also renewed an agreement which will enable the training of an additional 1,000 civil service employees. It focuses "on capacity building of additional 1,000 Maldivian civil servants in India," the Ministry of External Affairs said. The initial MoU was signed in 2019. It aimed at improving the skills and competencies of Maldivian civil service employees.

C. India and Maldives inaugurated India's Line of Credit (LoC)-assisted project of water and sewerage network in 28 islands of Maldives. A press release from the President's office said this project was initiated to provide clean water and safe sanitary facilities to the Maldivians.

"With the inauguration of 28 facilities today, 28,298 of the intended beneficiaries have now received these essential services, covering 7 per cent of the total population of the Maldives," the release added.

D. Security: In a joint statement, Maldivian Foreign Minister Zameer reaffirmed the current government's commitment to strengthening bilateral relations with India and working together to ensure national and regional stability and security, particularly in combating terrorism, extremism, and drug-related issues, according to Maldivian media reports.

E. FTA: The Maldives proposed establishing a Free Trade Agreement (FTA) with India. The Maldives presented this proposal to India during official discussions between Maldivian Foreign Minister Moosa Zameer and S Jaishankar.

3. Modern and strong relations

During his visit to Maldives, S Jaishankar said the relationship between India and Maldives was a modern one. Meanwhile, Minister of Foreign Affairs Moosa Zameer stated that this is the time in which Maldives-India relations are the strongest, according to PSM news.

Meanwhile, President Mohamed Muizzu said India has always been one of the closest allies and invaluable partners, facilitating and providing aid whenever Maldives needed it. He also expressed optimism that Maldives-India cooperation will prosper and develop in the coming years, a press release from the President's office stated.

4. 'India will deliver perishable goods to Addu'

The Maldives Ports Limited (MPL) announced on June 23 that India will begin permanently delivering perishable goods to Addu City starting in July.

5. India gives green signal for $150 million debt deferral

The Maldivian media reported in May that India gave the Maldives the green signal to extend the repayment deadline for $150 million of a $200 million debt. The loan was secured by the previous government upon assuming office in 2019.