Maldives President Mohamed Muizzu is in India this week seeking financial help as his country faces a serious economic crisis.
He expressed confidence that India, a major partner for development, will support the Maldives, which is struggling with a debt crisis and low foreign exchange reserves, down to just $440 million—enough for about one and a half months of imports.
Muizzu is on a five-day trip to India and is expected to ask for a financial bailout worth hundreds of millions of dollars. The president noted that India is aware of the Maldives’ financial situation and is likely to offer solutions to ease their troubles.
Interestingly, Muizzu’s friendly approach towards India is a significant change from his election campaign last year, where he promoted an “India out” policy, calling for Indian troops to leave the Maldives.
Speaking to the BBC, Muizzu did not directly discuss his past anti-India stance but mentioned that he believes any past differences can be resolved through dialogue. He noted that an Indian financial aid package would help stabilize the Maldives’ foreign currency reserves.
Despite the challenges, Muizzu insisted that the Maldives is not facing a default on its debts and prefers not to engage with the International Monetary Fund (IMF) for assistance, stating, “We have our own home-grown agenda.”
However, experts point out that the country’s foreign reserves are insufficient compared to its upcoming debt obligations, which could exceed $1 billion in the next two years.
Muizzu’s trip to India comes after tensions between the two nations, particularly after he chose to visit Turkey and China shortly after taking office.
He had also previously ordered Indian troops, stationed in the Maldives for humanitarian missions, to leave the country. In a compromise, both nations agreed to replace military personnel with civilian technical staff instead.
Moreover, Muizzu’s administration has made decisions seen as reducing India’s influence, including halting an agreement for a hydrographic survey in Maldivian waters that was established by the former government.
While Muizzu insists that these moves are in line with the wishes of the Maldivian people, many see his renewed interest in India as a response to the financial realities facing the Maldives.
Analysts suggest that Muizzu’s visit underscores the Maldives’ heavy reliance on India for financial support, a dependency that is hard for other countries to replicate.
This shift highlights the complexities of international relations in the region, especially between India and China, with Muizzu emphasizing a “Maldives First” foreign policy focused on respect and cooperation【BBC】.
https://www.bbc.com/news/articles/c2ek1x3p7rjo