Paradise in Peril: How India-Maldives Row Threatens Island Nation's Tourism Lifeline
India-Maldives diplomatic row escalates over ministers’ remarks
A diplomatic row has erupted between India and the Maldives over derogatory remarks made by three Maldivian ministers against Indian Prime Minister Narendra Modi. The ministers, who have been suspended, called Mr Modi a “clown”, “terrorist” and a “puppet of Israel” on social media, in response to his post promoting tourism to the Indian island chain of Lakshadweep.
The comments sparked outrage on Indian social media, with many users calling for a boycott of travel to the Maldives, which relies heavily on tourism for its economy. India’s foreign ministry summoned the Maldivian envoy, Ibrahim Shaheeb, to express its displeasure over the incident. One of India’s largest travel platforms, EaseMyTrip, also suspended all flight bookings to the island nation.
The Maldives government said the remarks were personal and did not reflect its official position. It also suspended the three ministers, Malsha Shareef, Mariyam Shiuna and Abdulla Mahzoom Majid, from their posts "effective immediately". The Maldives foreign ministry said it believed that "the freedom of expression should be exercised in a democratic and responsible manner, and in ways that do not spread hatred, negativity, and hinder close relationships between the Maldives and international partners".
The row comes amid strained relations between the two countries since the election of Maldivian President Mohamed Muizzu in September 2023. Mr Muizzu is seen as having closer ties with China and had campaigned on reducing India’s influence over the archipelago. He also asked a contingent of about 75 Indian troops to leave the country after he came to power.
Mr Muizzu is currently on a five-day state visit to China, which is India’s rival in the region. He has yet to make an official visit to India since he was elected, a departure from previous presidents that many have seen as a snub.
The controversy has also drawn criticism from former Maldivian leaders, who condemned the “hateful” and “racist” language used by the ministers. Former President Ibrahim Mohamed Solih said India had always been a good friend to the Maldives and urged not to let such remarks negatively impact the friendship between the two countries. Another former president, Mohamed Nasheed, called the language in the social media posts "appalling".
India and the Maldives have a long history of cooperation in various fields, including defence, trade, health and culture. India was one of the first countries to recognise the Maldives after its independence in 1965 and has provided assistance in times of crisis, such as the 2004 tsunami and the 2018 water shortage. However, the recent developments have raised concerns over the future of the bilateral ties and the stability of the region.
How the India-Maldives diplomatic row affects their economic ties
Trade and Investment
India is one of the Maldives’ major trading partners, with bilateral trade exceeding $300 million in 2021. India mainly exports refined petroleum, packaged medicaments, rice, cement and machinery to the Maldives, while importing scrap metals, petroleum gas, petroleum coke and fish from the Maldives. India also provides concessional credit lines and grants to the Maldives for various development projects, such as water supply, sanitation, airport expansion, connectivity and renewable energy.
Tourism and Hospitality
Tourism is the mainstay of the Maldivian economy, accounting for about 25% of its GDP and 70% of its employment. India has emerged as the largest tourist market for the Maldives since 2020, with more than 2.9 lakh Indian tourists visiting the island nation in 2021, and 1.8 lakh tourists in the first 11 months of 2023. India has also supported the Maldives’ tourism industry by providing assistance in infrastructure, human resources, air connectivity and visa facilitation. Many Indians work in the hospitality and tourism sector in the Maldives as technicians, engineers, managers, accountants and other roles.
Infrastructure and Development
India has been the Maldives’ partner in the development of socio-economic infrastructure, with several projects being implemented under the Indian Line of Credit and grant assistance. Some of the key projects are the Greater Male Connectivity Project, the largest infrastructure project in the Maldives, which will link the capital Male with three nearby islands through a 6.74 km bridge and causeway; the Hanimadhoo and Gan International Airport Redevelopment Projects, which will enhance the air connectivity and capacity of the Maldives; the Water and Sanitation on 34 Islands Project, which will improve the water supply and sewerage facilities on 34 designated islands; and the National College for Policing and Law Enforcement, the largest grant project executed by India in the Maldives.
Defence and Security
India and the Maldives have a close and longstanding defence and security cooperation, which covers areas such as joint exercises, training, capacity building, maritime surveillance, counter-terrorism and disaster management. India has provided the Maldives with military equipment, such as helicopters, radars, patrol vessels and coastal surveillance systems. India has also helped the Maldives in times of crisis, such as the 2004 tsunami, the 2018 water shortage and the 2020 Covid-19 pandemic. India has also been a net security provider to the Maldives, as demonstrated by the Operation Cactus in 1988, when India intervened to foil a coup attempt against the then Maldivian President Maumoon Abdul Gayoom.
Challenges and Opportunities
Despite the strong and friendly ties between India and the Maldives, there have been some challenges and uncertainties in the bilateral relationship, especially due to the political instability and the growing presence of China in the Maldives. The Maldives witnessed a democratic transition in 2008, but also experienced political turmoil, human rights violations and constitutional crises under the authoritarian rule of former President Abdulla Yameen from 2013 to 2018. During this period, the Maldives drifted away from India and moved closer to China, signing a Free Trade Agreement and joining the Belt and Road Initiative. China also invested heavily in the Maldives’ infrastructure, tourism, housing and other sectors, creating a debt trap and a strategic foothold for Beijing in the Indian Ocean.
However, the situation changed in 2018, when the opposition coalition led by Ibrahim Mohamed Solih won the presidential election, defeating Yameen and restoring democracy in the Maldives. Solih adopted a pro-India and pro-democracy foreign policy, and revived the bilateral ties with India, which had been strained under Yameen. India welcomed the change of regime and extended its full support to the Maldives’ development and stability. Since then, India and the Maldives have enhanced their cooperation in various fields and signed several agreements and memoranda of understanding.
The recent diplomatic row over the ministers’ remarks has been a setback to the otherwise cordial and constructive relationship between India and the Maldives. The Maldivian government has taken swift action to suspend the ministers and apologise to India, while the Indian government has expressed its displeasure and sought assurances that such incidents will not recur. Both sides have also reaffirmed their commitment to maintain the close and friendly ties and resolve any issues through dialogue and mutual respect. The row has also drawn criticism from the former Maldivian leaders and the public, who have condemned the hateful and racist language used by the ministers and urged not to let such remarks negatively affect the friendship between the two countries.
The diplomatic row is likely to be a temporary glitch in the otherwise robust and resilient relationship between India and the Maldives, which is based on shared values, interests and aspirations. India and the Maldives have a lot of potential and opportunities to further strengthen their partnership in the areas of trade, tourism, infrastructure, defence, health, education, culture and people-to-people ties. India and the Maldives also have a common stake in ensuring the peace, stability and security of the Indian Ocean region, which faces various challenges such as piracy, terrorism, climate change and maritime disputes. India and the Maldives need to work together to overcome the challenges and leverage the opportunities to foster a mutually beneficial and comprehensive partnership for the 21st century.
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