Navigating Economic Diplomacy in Indo-Maldivian Relations

Abstract

The electoral victory of President Mohamed Muizzu in Maldives marks a critical juncture in the nation's foreign policy, with drastic effects on its bilateral relations with India. This paper looks at the economic realignment of the Maldives under Muizzu's administration, shifting from a pro-India position to a more balanced approach that seems to favour closer ties with China and then back to a pro-India stance when required. The analysis starts with an overview of historical India-Maldives relations, stressing their deep-rooted connections in security, economic cooperation, and cultural ties. His election in September 2023, led to the swift withdrawal of Indian military personnel stationed in the Maldives-an action which resonated with nationalist sentiment against perceived foreign influence. It reflects a more general tendency within Maldivian politics: growing concerns of sovereignty and national security dictate an increasing extent of foreign policy decisions. Besides this, economic diplomacy is shown to play a crucial role in bilateral relationships. India has provided and continues to commit large financial assistance and infrastructural investment for the Maldives economy, which becomes a barricade for the debt- ridden island nation's economy. Still, engaging with China deeper, as is the case with Maldives through its joint developmental activities, has to balance the economic relationship not to over- rely on a single partner.

The following study further explores implications that Muizzu's foreign policy entails on India- Maldives relationships specifically in terms of economic partnerships. A natural consequence of the internationalisation strategy of the Maldives - it is diversifying relationships around itself, including closer co-operations with China through joint programmes, especially the Belt and Road Initiative, BRI - should affect India's role as its traditional ally. It concludes by examining the prospective trajectory of India-Maldives relations within these changes. Positive concerns prompt the necessity of adaptive strategies for both countries to face this changing geopolitical landscape.