In a notable diplomatic turnaround, Maldivian President Mohamed Muizzu—once known for his “India Out” stance—has shifted tone, now calling Prime Minister Narendra Modi a “wonderful person” and India a “trusted friend.” This change comes as Maldives faces mounting economic pressure and seeks support to stabilize its finances.
The reversal was evident during PM Modi’s recent visit to the Maldives, where Muizzu broke protocol to personally receive him at the airport—an uncommon gesture in the island nation’s diplomatic traditions. Their bilateral talks focused on boosting cooperation in trade, infrastructure, and defence.
Just months ago, Muizzu’s government had leaned heavily toward Beijing, signing deals for Chinese military assistance and making its first state visit to China. However, India’s sustained diplomatic outreach—marked by restraint, early congratulatory messages after Muizzu’s election, and continued economic assistance—has laid the groundwork for this recalibration.
Key to the shift is India’s economic offer: a new $565 million line of credit for infrastructure projects and a debt restructuring plan that reduces the Maldives’ annual repayment burden by 40%. With foreign reserves under pressure and a widening budget deficit, India’s support has become essential for Muizzu’s government.
“India is one of the major tourism countries that helps the Maldives with tourism. With PM Modi’s visit, it is going to increase a lot,” Muizzu said, further noting that bilateral cooperation will grow stronger in the coming years.
While China still holds a large portion of the Maldives’ debt, analysts say Muizzu’s pivot reflects geopolitical pragmatism. India’s geographic proximity, combined with its readiness to offer financial and developmental aid, has positioned it as an indispensable partner for the Maldives—both economically and strategically.
The renewed engagement signals a broader shift in the region’s power dynamics, as smaller nations like Maldives navigate between competing global influences while addressing immediate domestic challenges.
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