India’s Prime Minister Narendra Modi visited the Maldives on 25-26 July 2025 as the Guest of Honour for the island nation’s 60th Independence Day. This visit marked turning point in India-Maldives relations, which had experienced strain in recent years. The event telld the shared strategic interests and the need for regional cooperation in the evolving Indian Ocean geopolitical landscape.
Historical Background
India recognised Maldives’ independence early in 1965. The two nations maintained close ties based on geography, culture, and security. Early relations were stable, supported by India’s role in Maldives’ development. However, the introduction of multiparty democracy in Maldives brought political shifts. Power oscillated between pro-India and nationalist factions, creating periods of friendly and frosty relations.
Recent Strains in Bilateral Relations
Tensions peaked after President Mohamed Muizzu came to power with an India Out campaign. His government requested the withdrawal of Indian military personnel, signalling a shift from previous policies. Muizzu’s visit to China broke diplomatic tradition and indicated Maldives’ intent to diversify alliances. Anti-India rhetoric and social media attacks on Prime Minister Modi worsened the situation, affecting Indian tourism—a key economic sector for Maldives.
Diplomatic Reset and Symbolism
Despite initial challenges, relations began to improve. Muizzu moderated his stance towards India recognising its geographical and economic importance. Modi’s presence at the 60th Independence Day celebrations symbolised renewed partnership. Both countries issued a commemorative stamp marking six decades of diplomatic ties. This gesture reflected a desire to maintain historical continuity while exploring new avenues of cooperation.
Economic and Development Cooperation
India announced a Rs 4,850 crore (US$565 million) Line of Credit with flexible repayment terms. Negotiations for a Free Trade Agreement were initiated to boost trade and investment. India handed over key infrastructure projects including 3,300 housing units in Hulhumalé and roads in Addu City. Health emergency infrastructure was strengthened with BHISHM health cube sets. India’s development model emphasises demand-driven, transparent assistance contrasting with China’s loan-heavy approach.
Security and Strategic Partnership
Security cooperation remains vital amid growing external influence in the Indian Ocean. India and Maldives maintain regular, institutionalised security ties. Muizzu condemned the April 2025 Pahalgam terrorist attack and expressed solidarity with India’s fight against terrorism. The partnership contributes to regional maritime stability and counters geopolitical challenges, especially from China’s expanding presence.
Geopolitical Context and Future Outlook
Maldives pursues a balancing act between India and China. China remains the largest external creditor, but economic risks from Chinese loans are apparent. Maldives aims to avoid zero-sum rivalry by engaging both powers. India adapts to this multi-vector diplomacy while safeguarding its maritime interests. The renewed India-Maldives relationship marks diplomacy’s role in managing complex regional dynamics.
Questions for UPSC:
- Taking the example of India-Maldives relations, discuss the role of small island nations in the geopolitics of the Indian Ocean region.
- Examine how India’s Neighbourhood First policy influences its diplomatic and security engagements with neighbouring countries like the Maldives.
- Analyse the strategic importance of maritime security in the Indian Ocean. How do regional partnerships contribute to maintaining stability?
- Critically discuss the economic and geopolitical implications of China’s Belt and Road Initiative in South Asia. How do countries like the Maldives balance their relations between India and China?
