India, Maldives Reset Relations

Indian Foreign Minister Subrahmanyam Jaishankar has visited the Maldives, marking his first official trip to the island nation since diplomatic tensions flared earlier this year under the new administration led by President Mohamed Muizzu.

The visit signals a reset in relations following a period of strained ties, primarily triggered by the Maldives' shift towards China.

Relations soured when President Muizzu, shortly after assuming office, ordered the removal of Indian troops stationed in the Maldives.

These troops had been operating surveillance aircraft, and their withdrawal was quickly followed by the Maldives signing a military agreement with China. This realignment raised concerns in New Delhi, given the Maldives' strategic importance in the Indian Ocean region.

During his visit, Jaishankar emphasized the importance of defense and security cooperation between the two nations.

He also announced the introduction of India’s Unified Payments Interface (UPI) in the Maldives, allowing the use of RuPay cards for transactions in Indian rupees.

This move is expected to facilitate easier payments for the large number of Indian tourists visiting the Maldives, known for its picturesque beaches.

The tourism sector has been a point of contention between the two countries. Earlier this year, many Indians began boycotting the Maldives after ministers in Muizzu’s cabinet made derogatory comments about Indian Prime Minister Narendra Modi.

Although the ministers were suspended, the incident strained tourism ties, prompting the Maldivian government to seek increased tourism from China.

However, recognizing the economic impact, Maldivian Tourism Minister Ibrahim Faisal later urged Indians to return, acknowledging the country's heavy reliance on tourism.

Jaishankar’s visit also included a ceremony celebrating the completion of water supply and sewerage facilities on 28 Maldivian islands, funded by a credit line from India.

During the event, President Muizzu praised India as one of the Maldives' "closest allies and invaluable partners," indicating a warming of relations.

Despite the earlier friction, India’s development projects in the Maldives have gained momentum, including a $500 million infrastructure project in Malé and the construction of two airports, each valued at nearly $130 million, backed by Indian credit.

New Delhi also extended financial support by rolling over a $50 million treasury bill for the Maldivian government.

The Maldives’ strategic location south of India underscores its significance in India's 'neighborhood first' policy. Jaishankar’s visit reflects India's ongoing commitment to strengthening bilateral ties, ensuring stability and cooperation in the region.