How India-Maldives relations recovered from recent tensions

India-Maldives relations have experienced significant ups and downs in recent years, particularly following tensions in 2023-2024.

The Maldives’ “India Out” campaign and diplomatic spats strained ties, but strategic diplomacy, economic support, and high-level engagements have paved the way for reconciliation. 

Roots of strained India-Maldives relations

India-Maldives relations faced challenges starting in 2023 when President Mohamed Muizzu, elected on an “India Out” platform, demanded the withdrawal of approximately 80 Indian military personnel stationed in the Maldives. These troops operated aviation assets for humanitarian missions, but their presence was seen by some as infringing on Maldivian sovereignty.

Tensions escalated in early 2024 when Maldivian deputy ministers made derogatory remarks about Prime Minister Narendra Modi’s promotion of Lakshadweep, sparking a boycott by Indian tourists.

Mal-dives dives in popularity
& shows its MAL-ease 😂😂

Looks like Maldives is really shaken up 😰😰after PM @narendramodi ji’s push to promote Lakshadweep as a tourist destination & then Lakshadweep topping Google search 🔍 for 2 days in a row after that 🔥🔥

That’s what… pic.twitter.com/aa68mITeTN

— PallaviCT (@pallavict) January 6, 2024

This hit the Maldives’ tourism-driven economy hard, as India was a major source of visitors. Additionally, Muizzu’s pro-China tilt, including defence and economic agreements with Beijing, raised concerns in India about a strategic shift in the Indian Ocean Region.

Reconciliation

The restoration of India-Maldives relations began with pragmatic steps to address mutual concerns:

Diplomatic resolution of the troop issue

By May 2024, India replaced its military personnel with civilian technical staff to operate donated aviation assets, ensuring continuity of critical services like medical evacuations while addressing Maldivian sovereignty concerns.

This compromise, facilitated by India’s National Security Adviser Ajit Doval, was a pivotal move in easing tensions and strengthening India-Maldives relations.

High-level engagements

A significant milestone was Prime Minister Modi’s visit to the Maldives on 25 July, where he was warmly received by President Muizzu and senior officials. The visit focused on advancing India-Maldives relations through discussions on a Free Trade Agreement (FTA), defence cooperation, and infrastructure projects like the Greater Malé Connectivity Project.

Earlier, External Affairs Minister S Jaishankar’s visit in August 2024 laid the groundwork by inaugurating India-funded projects and reinforcing economic and security ties.

Economic support and tourism recovery

India extended vital financial aid to the Maldives, including a $400 million currency swap agreement and a $50 million Treasury Bill rollover in 2024. These measures supported the Maldives’ economy, which faced high external debt, including to China. The easing of the Indian tourist boycott, combined with initiatives like scholarships and training programmes, further bolstered India-Maldives relations at the grassroots level.

Strategic and connectivity initiatives

India-Maldives relations have been strengthened through strategic cooperation aligned with India’s “SAGAR” (Security and Growth for All in the Region) initiative. Key projects include renewable energy collaborations, digital connectivity via a UPI rollout (enabled by a November 2024 MoU), and infrastructure development. These efforts underscore the Maldives’ importance in India’s regional strategy and counterbalance China’s influence in the Indian Ocean.

Muizzu’s pragmatic shift

President Muizzu’s shift from an “India Out” stance to calling India a “friend” reflects economic realities and India’s strategic importance. The Maldives’ reliance on Indian tourists — over 209,000 in 2023 before the boycott — and financial aid necessitated reconciliation. India’s measured approach, combining economic generosity with diplomatic firmness, has fostered a renewed partnership, as evidenced by the warm reception during Modi’s current visit.

This is the power of Indian diplomacy, see how tables turn👇

2022: Mohamed Muizzu then as Male Mayor led the “India Out” campaign.

2025: As President, Muizzu personally invites Prime Minister #NarendraModiJi to Maldives and welcomes him warmly. pic.twitter.com/Kk4kZYECKQ

— Ganesh (@me_ganesh14) July 25, 2025

Challenges and future prospects

While India-Maldives relations are on an upward trajectory, challenges remain. Domestic political pressures in the Maldives could resurface, and the nation’s debt to China, estimated at over 50% of its GDP, poses economic risks. Sustained efforts, including the proposed FTA and ongoing infrastructure projects, will be crucial to maintaining trust and deepening ties.

India-Maldives relations have recovered from recent tensions through diplomatic compromises, economic support, and high-level engagements, culminating in Prime Minister Modi’s visit on 25 July 2025. By addressing the troop withdrawal issue, extending financial aid, and prioritising connectivity, India has reaffirmed its role as a key partner in the Indian Ocean Region.

As both nations navigate geopolitical complexities, their renewed partnership promises mutual benefits and regional stability.