Muizzu's U-turn: India in, China out? Maldives seemingly pivots again as PM Modi offers big incentives
Narendra Modi
as a "wonderful person".
Coming from someone who rose to power on an "India Out" campaign, followed by his cabinet colleagues making derogatory remarks against PM Modi, shows a significant shift in the geopolitical dynamics of the Global South.
The two leaders held talks on Friday to repair bilateral ties as the also discussions focused on strengthening cooperation in trade, defence, and infrastructure.
Strategic U-turn
After coming to power by promising to reduce Indian influence and build closer ties with China—including a first state visit to Beijing and agreements for Chinese military assistance—Muizzu now calls India a "trusted friend" and rolled out the red carpet for PM Modi, breaking with protocol to personally receive him at the airport.
"He is a wonderful person who is very fond of building relationships between India's neighbours. The Maldives and India have a very good relationship that goes back centuries, and with PM Modi's leadership, cooperation between the two governments is going to be even more prosperous in the days ahead," he said on the last day of PM Modi's trip.
What could be the reasons behind change in stance?
The Maldivian economy is under severe stress with a substantial budget deficit and dwindling foreign reserves, and the support offered by India is pivotal for Muizzu's government to stabilize finances.
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Although Maldives still owes China large debts, New Delhi has emerged as a key partner to avoid potential economic default.
During PM Modi's visit, India announced a fresh $ 565 million line of credit (LoC) for the Indian Ocean neighbour and signed an agreement to reduce its annual debt repayment burden by 40%.
'To give a new impetus to our development partnership, we have decided to provide a line of credit of $ 565 million, or approximately Rs 5,000 crore, to Maldives.
It will be used for projects related to infrastructure development in line with the priorities of the people of Maldives,' PM Modi said, as he hailed Maldives as a "true friend".
India's sustained efforts
However, this diplomatic shift hasn't happened overnight, and it certainly can't be attributed to PM Modi's visit alone.
Amid early concerns about losing a key ally in the region, India chose restraint over rhetoric. New Delhi maintained steady engagement, with PM Modi being the first world leader to congratulate Muizzu after his election victory.
This gesture, combined with consistent diplomatic outreach and sustained economic support, laid the groundwork for rebuilding trust.
Back in 2019, India had extended an $800 million Line of Credit (LoC) to the Maldives during the tenure of the pro-India Maldivian Democratic Party (MDP) government.
What PM Modi's trip has done, is to bring India's efforts to light, with Muizzu acknowledging it. "We all have seen how India has helped the Maldives in the past, and nobody will doubt how India will be a very crucial partner going forward," he said.
"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. I am sure that people-to-people exchange between the two countries will greatly boost because of this visit," he added.
Analysts note that Muizzu's pivot is a pragmatic recognition of Maldives' geographic and economic realities—India remains indispensable for trade, connectivity, and tourism. While China's support remains, India's proximity and willingness to provide urgent financial and developmental assistance have proved decisive in influencing Muizzu's recalibration
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