India pledges $565m to Maldives to boost defense, infrastructure
India's Prime Minister renews ties with Maldives
MALE: India's Prime Minister Narendra Modi offered $565 million to the Maldives on Friday to bolster its defense forces and infrastructure in the small, yet strategically located, neighbor. On his first official visit to the Indian Ocean archipelago since winning a third term last year, Modi stressed that India will remain the 'first responder' for the Maldives, which has a population of around 525,000 people. 'India will continue to support the Maldives in strengthening its defense capabilities,' Modi said. 'Peace, stability, and prosperity in the Indian Ocean region are our shared goals.'
Regional powerhouse India had been concerned that the Maldives was drifting towards the orbit of its rival China following the 2023 election of President Mohamed Muizzu on an anti-India platform. Since coming to power, Muizzu has secured the withdrawal of a small contingent of Indian military personnel who operated two search-and-rescue helicopters and a fixed-wing reconnaissance aircraft based in the archipelago. However, he has since toned down his anti-India rhetoric. Muizzu met with Modi twice last year in New Delhi, and both leaders vowed to begin a 'new chapter' in bilateral ties. Modi on Friday unveiled a $565 million credit line for the Maldives, which is facing a severe foreign exchange shortage despite its highly successful upmarket tourism industry.
He also inaugurated several infrastructure projects, including roads funded by India along with a 4,000-unit housing scheme. Muizzu said the credit line from India would be used to strengthen the Maldives' security forces, improve healthcare, housing, and education. 'India's continued assistance to the Maldives through the export of essential commodities is a key facet of our bilateral cooperation,' Muizzu said. Modi is due to leave the archipelago on Saturday after attending the 60th Independence Day celebrations in the capital Male.
China and India are the two largest bilateral lenders to the Maldives. Known as a luxury holiday destination with pristine white-sand beaches and secluded resorts, the Maldives has also become a geopolitical hotspot. India remains apprehensive about China's growing presence in the Indian Ocean, particularly in the Maldives and neighboring Sri Lanka. Global east–west shipping lanes pass through the nation's chain of 1,192 tiny coral islands, stretching around 800 kilometers (500 miles) across the equator. India's government has traditionally regarded the Maldives, along with Sri Lanka, to be within its sphere of influence. — AFP
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