In a significant shift from a pro-China stance, Maldivian President Mohamed Muizzu cedes control of 28 islands to India, signalling a new phase in bilateral relations

In a notable diplomatic development, the Maldives has ceded control of 28 islands to India, marking a significant turnaround in the island nation’s foreign policy. This move comes amid a broader realignment of Maldivian foreign policy, which had previously leaned heavily towards China under President Mohamed Muizzu’s administration.

Muizzu, who had risen to power on an “India Out” campaign, advocating for the removal of Indian presence from the Maldives, appears to have recalibrated his approach following recent diplomatic engagements with New Delhi. The shift follows a series of high-profile visits and agreements between the two countries aimed at mending relations and fostering cooperation.

During a recent visit to Malé, Indian External Affairs Minister S. Jaishankar played a crucial role in advancing this diplomatic pivot. Jaishankar’s visit concluded with the signing of several Memorandums of Understanding (MoUs) between India and the Maldives. These agreements focused on enhancing capacity building, with plans to train an additional 1,000 Maldivian civil servants in India. Additionally, the introduction of India’s Unified Payments Interface (UPI) into the Maldives aims to bolster financial technology in the island nation.

Jaishankar also inaugurated six High Impact Community Development Projects (HICDPs) supported by Indian grant assistance. These projects address critical areas such as mental health, special education, speech therapy, and street lighting, reflecting India’s commitment to supporting various sectors within the Maldives.

The centrepiece of Jaishankar’s visit was the formal agreement allowing India to assist in the development of water and sewerage infrastructure across 28 Maldivian islands. This agreement marks a significant concession from Muizzu’s administration, which had previously removed Indian troops and technical workers from the Maldives under his predecessor’s policies.

The move to cede control of these islands highlights a strategic shift by the Maldivian government. Despite a sharp decline in Indian tourists following a diplomatic spat earlier this year, the Maldives now appears to be realigning its foreign policy priorities. This realignment is seen as a pragmatic step to enhance developmental support and economic assistance from India.

The diplomatic thaw comes at a time when India has notably reduced its aid to the Maldives. The Union Budget for 2024 revealed a substantial cut of 48 percent in aid to the island nation, allocating Rs 400 crore compared to Rs 770 crore the previous year. This reduction reflects a recalibration of India’s foreign aid strategy amidst shifting geopolitical dynamics.

President Muizzu acknowledged India’s continued support and expressed a renewed commitment to strengthening India-Maldives relations. He praised the developmental assistance provided by India, which includes crucial support for social, infrastructural, and financial development projects.

Analysis

Political: The Maldives’ decision to transfer 28 islands to India represents a significant geopolitical shift. President Mohamed Muizzu’s initial pro-China stance, characterized by the “India Out” campaign, has been reversed in favor of a more balanced approach. This shift is indicative of the Maldives’ strategic realignment, possibly influenced by the need for economic and developmental assistance that India offers. The move could also reflect the Maldives’ desire to stabilize its international relations and secure more robust support from neighbouring countries.

Social: The transfer of these islands and the renewed focus on cooperation with India may have a positive social impact within the Maldives. The development projects supported by Indian aid are likely to improve public services and infrastructure, addressing critical social needs such as mental health, education, and public lighting. This assistance could enhance the quality of life for Maldivian citizens and foster a more positive perception of India among the local population.

Racial: While the island nation’s foreign policy shift does not directly address racial issues, the broader context of international aid and development has implications for racial and ethnic equity. India’s engagement with the Maldives and the support for various community projects may contribute to more equitable development, potentially benefiting marginalized groups within the Maldivian society.

Gender: The focus of Indian aid on community development projects, including special education and mental health, could have indirect benefits for gender equity. Women and children, who are often disproportionately affected by educational and health disparities, may see improvements in their access to services and support. This could contribute to more inclusive development outcomes in the Maldives.

Economic: The ceding of 28 islands to India and the subsequent development projects represent a strategic economic partnership. The Maldives benefits from significant infrastructural improvements funded by Indian aid, while India gains a strengthened presence and influence in the region. The reduction in Indian aid noted in the latest budget may also reflect a recalibration of economic priorities, aligning with the Maldives’ new approach to international relations.