Why in news?

Prime Minister Narendra Modi is on an official visit the Maldives, at the invitation of President Dr. Mohamed Muizzu.

This marks his third visit to the Maldives and the first by any Head of State or Government during President Muizzu’s tenure.

What’s in Today’s Article?

• Key Highlights of PM Modi’s Visit to Maldives
• Analysis - From ‘India Out’ to Independence Day Invitation
• Conclusion

Key Highlights of PM Modi’s Visit to Maldives

• 60th Independence Day of Maldives
  • PM Modi congratulated Maldives on its 60th Independence Day
  • He is participating in the 60th Independence Day celebrations of the Maldives, as the Guest of Honour.
• Stamp to mark 60 years of India-Maldives friendship released
  • PM Modi and President Mohamed Muizzu issued a stamp to mark 60 years of India-Maldives relations.
    • India was one of the first countries to establish diplomatic relations with Maldives following its independence in 1965.
  • The stamps feature India’s Uru boat and Maldives’ Vadhu Dhoni, symbolizing shared maritime heritage and centuries-old Indian Ocean trade.
    • Uru boat - A large wooden dhow handcrafted in the historic boatyards of Beypore, Kerala.
    • The traditional Maldivian fishing boat - Vadhu Dhoni - is used for reef and coastal fishing.
• India gifts BHISHM health cube sets to Maldives
• As part of India’s Neighbourhood First policy and Vision MAHASAGAR, India gifted handed over two units of Aarogya Maitri Health Cube [BHISHM] sets to the Government of Maldives.
  • BHISM is a state-of-the-art portable Cube containing medical essentials, designed for rapid deployment in emergencies and disaster zones.
• With state-of-the-art medical equipment as part of the cube, it can provide medical aid to 200 casualties with in-built support to sustain a crew of six medical personnel for up to 72 hours.
• Inauguration of the Building of Ministry of Defence in Male
  • PM Modi and Maldivian President Mohamed Muizzu inaugurate the building of the Ministry of Defence in Malé.
  • This building has been constructed with India’s financial assistance.
• Other Inaugurations / Handing-over
  • Handing-over of 3,300 social housing units in Hulhumale under India's Buyers' Credit facilities
  • Inauguration of Roads and Drainage system project in Addu city
  • Inauguration of 6 High Impact Community Development Projects in Maldives
  • Handing-over of 72 vehicles and other equipment
• Agreement/MoU Signed
  • Extension of Line of Credit (LoC) of INR 4,850 crores to Maldives
    • LoC has been extended to support the island as it faces an enduring twin deficit problem.
    • This is the first time that such credit is being extended to the Maldives in Indian Rupee.
  • Reduction of annual debt repayment obligations of Maldives on GoI-funded LoCs
    • This agreement gives major relief to Maldives by reducing its yearly debt payments to India.
    • Earlier, Maldives had to pay $51 million every year for an $800 million loan. Now, after a 40% cut, it will only have to pay $29 million annually.
  • Launch of India-Maldives Free Trade Agreement (IMFTA) negotiations
• Climate Cooperation and Green Commitments
  • Joint tree-planting under India’s "Ek Pedh Maa Ke Naam” and Maldives’s “Pledge of 5 Million Tree Plantation” campaigns.

Analysis - From ‘India Out’ to Independence Day Invitation

• Maldives' shift from the anti-India ‘India Out’ campaign to extending a ceremonial invitation to Prime Minister Narendra Modi for its Independence Day celebrations in 2025 marks a significant diplomatic turnaround.
• Initially, President Mohamed Muizzu’s tenure, beginning in September 2023, reflected a pro-China tilt.
• His party's campaign had strongly criticised India's military presence in the Maldives, and his early diplomatic visits to Turkey and China, bypassing India, sent a clear message of divergence.
• Pragmatic Diplomacy Paid off
  • Despite derogatory remarks from some Maldivian ministers and demands for troop withdrawal, India maintained composure, choosing engagement over escalation.
  • Modi met Muizzu at COP28 in UAE, and India replaced its 76 military personnel with HAL technicians in May 2024, addressing Male's concerns without severing strategic ties.
  • This pragmatic diplomacy coincided with Maldives facing internal economic stress, limited Chinese support, and the ruling PNC gaining a supermajority in Parliament.
  • Seeking stability and economic aid, Foreign Minister Moosa Zameer visited India in May 2024, followed by President Muizzu’s five-day visit in October.
    • The visit concluded with the adoption of a joint vision on economic and maritime security partnership.
  • India’s assistance played a crucial role in this reset—raising aid by ₹120 crore, rolling over Treasury Bills worth $150 million, extending currency swaps of $750 million, and offering the highest-ever quotas for essential goods exports.
  • Trade surged to $548 million in 2023, backed by visa-free access for Indian business travellers and LoC projects.

Conclusion

President Muizzu’s public statement affirming that “Maldives will not do anything that would harm India’s security interests” marked a clear departure from the earlier rhetoric. The Maldives’ gesture to invite PM Modi as Guest of Honour on its 60th Independence Day underlines the maturing of bilateral ties, driven by realism, mutual interest, and regional necessity.

In sum, India’s patient diplomacy and sustained economic engagement turned a strained relationship into one of renewed trust and cooperation, exemplifying a successful recalibration in the Indian Ocean neighbourhood.