Maldives President Mohamed Muizzu. File
| Photo Credit: PTI

“The Maldivian government has estimated that India will provide MVR 1.6 billion in grant in aid to the archipelago nation in 2025, constituting 72% of the total foreign aid it will receive from friendly countries,” according to media reports.

We hope to welcome more Indian tourists to Maldives: Mohamed Muizzu

The estimates were made in the proposed State Budget 2025 submitted to the Parliament on Thursday (October 31, 2024), news portal Adhadhu.com reported.

In the proposed budget, President Mohamed Muizzu-led administration projected a total of Maldivian Rufiyaa (MVR) 2.25 billion as international grant in aid. Of this, India is expected to provide 72%, amounting to MVR 1.6 billion (approximately $104 million).

Editorial | ​First responder: On Maldives-India ties

“China will provide the archipelago nation MVR 502 million, 22% of projected free aid,” the report said.

The Maldivian government expects to receive free aid from other friendly nations such as Japan, Pakistan, Saudi Arabia and the Netherlands. According to the proposed budget, around MVR 336 million will be received as free aid from international organisations.

India gives Maldives a $750 million currency swap arrangement

“India has provided “substantial” financial help to the Maldives this year,” the report said.  During Muizzu’s state visit to India last month, New Delhi announced a $400 million support to the island nation. The two sides also inked a currency swap agreement to the tune of ₹3,000 crore.

Earlier this year, India came to the assistance of the Maldives by agreeing to rollover the Treasury Bills subscribed by the State Bank of India amounting to $100 million in May and September for a further period of one year.

Male:

The President of Maldives, Mohamed Muizzu, decided to take the necessary steps to introduce the Unified Payment Interface (UPI) in the island nation, following the recommendation of the Cabinet on Sunday.

This move came following India agreeing to share its expertise in the implementation of digital and financial services and to work in the development of the Digital Public Infrastructure (DPI) through the launch of India’s Unified Payments Interface (UPI), Unique Digital Identity, during Mohamed Muizzu’s State Visit earlier this month.

The decision by the Maldivian President is expected to bring significant benefits to the Maldivian economy, including increased financial inclusion, improved efficiency in financial transactions, and enhanced digital infrastructure, as per a statement released by his office.

The statement further added that the decision was made after the Cabinet thoroughly discussed a report submitted by the Minister of Economic Development and Trade at a cabinet meeting.

President Muizzu also decided to set up a consortium to introduce UPI in the Maldives and further suggested that banks, telecom companies, state-owned companies and fintech companies operating in the country should be included in the consortium.

Mohamed Muizzu further appointed TradeNet Maldives Corporation Limited, a leading agency with proven expertise, as the consortium’s leading agency, the statement stated.

He also decided to constitute an interagency coordination team comprising the Ministry of Finance, the Ministry of Homeland Security and Technology and the Maldives Monetary Authority to lead the Ministry of Economic Development and Trade to oversee the establishment of the UPI in the Maldives.

During his state visit to India earlier this month, India also launched the RuPay cards in the Maldives to enhance the ease of payments for Indian tourists visiting the island nation as well as for Maldivian nationals visiting India, in an attempt to foster digital and financial cooperation between the two countries.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

Maldives President Mohamed Muizzu and First Lady of Maldives, Sajidha Mohamed arrived in New Delhi on Sunday, for his first bilateral visit to India.

During this visit, President Muizzu will hold meetings with President Droupadi Murmu, Prime Minister Narendra Modi and other senior officials.

He was welcomed by Union Minister of State for External Affairs, Kiriti Vardhan Singh. Mohamed Muizzu’s visit to India, from October 6-10, has come upon the official invitation of President Droupadi Murmu.

Recently, on the sidelines of the 79th United Nations General Assembly (UNGA) in New York, Mohamed Muizzu told ANI, that he is planning to visit India as soon as possible. He also praised the “very strong” bilateral relationship between the two countries.”

“I am planning to visit (India) as soon as possible…We have a very strong bilateral relationship,” Mohamed Muizzu told ANI.

This will notably be the second time that Mohamed Muizzu is visiting India this year after attending the swearing-in ceremony of Prime Minister Narendra Modi earlier this June.

Notably, according to earlier convention, almost every Maldivian President used to make his first foreign visit to India, but Mohamed Muizzu changed the trend by first visiting Turkiye and then China, after assuming office.

Since coming to power, Mohamed Muizzu government took several steps that have been unconventional from the point of view of India-Maldives ties. He ran his whole presidential campaign on the lines of ‘India Out’. The removal of Indian troops from the country was the main election campaign of Mohamed Muizzu’s party.

However, lately, Mohamed Muizzu has taken a reconciliatory tone after ties with India soured, leading to a diplomatic row. He also thanked India for financial assistance and called New Delhi, one of Male’s ‘closest’ allies.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

Maldives President Mohamed Muizzu will be visiting India from October 6 to 10, the foreign ministry said today. This will be his first bilateral visit to India. He had earlier travelled to India in June this year for the swearing-in ceremony of Prime Minister Narendra Modi and his council of ministers.

Mr Muizzu will meet President Droupadi Murmu and hold discussions with PM Modi on bilateral, regional, and international issues of mutual interest during his visit. He will also visit Mumbai and Bengaluru where he would be attending business events.

Maldives is India’s key maritime neighbour in the Indian Ocean Region (IOR). The nation also found a special place in the Prime Minister’s vision of ‘SAGAR’ (Security and Growth for All in the Region) and India’s ‘Neighbourhood First Policy’.

“The visit of President Mohamed Muizzu to India after the recent visit of the External Affairs Minister )S Jaishankar) to the Maldives is testimony to the importance that India attaches to its relations with the Maldives and is expected to lend further momentum to cooperation and robust people to people ties between the two countries,” the Minister of External Affairs said in a statement.

S Jaishankar visited the Maldives in August – first high-level trip from New Delhi after the island nation’s pro-China president, Muizzu, assumed office in November last year.

During his visit, he met the Maldives President and other top leaders and assured them that New Delhi attached top priority to its multifaceted relationship with Male and was determined to further its developmental cooperation with the country.

India’s relationship with the Maldives was hurt after Muizzu, known for his pro-China leanings, took charge as the President late last year.

Within hours of his oath, he demanded India replace the defence personnel it had stationed in the Maldives with civilians.

He, however, visited India to attend PM Modi’s oath-taking ceremony and recently reaffirmed his administration’s full commitment to strengthening the historic and close connections between the Maldives and India.

He said that India has always been one of the closest allies and invaluable partners, facilitating and providing aid whenever Maldives has needed it.

A file photo of the flag of Republic of Maldives.

Despite global lenders and rating agencies flagging a “high risk” of debt distress in the Maldives, the government said it is well prepared to stave off a financial meltdown.

Addressing Colombo-based journalists on Friday evening (September 13, 2024), Minister of Foreign Affairs Moosa Zameer and Minister of Finance Mohamed Shafeeq ruled out a possible default and pointed to “crucial steps” taken by the government towards fiscal consolidation and reform.

India, Maldives hold defence dialogue focusing on Indian Ocean

The top officials’ assurance comes days after rating agency Moody’s downgraded the island country’s credit rating and warned of a full-blown debt crisis and possible default, amid looming deadlines for foreign debt servicing.

President Mohamed Muizzu assumed office in November 2023 after a big election win — he has a comfortable majority in Parliament or People’s Majlis as well — but currently faces a daunting challenge as the Indian Ocean archipelago grapples with high external debt. “The Muizzu administration is taking advice from the International Monetary Fund, but there is no immediate plan to sign up for its programme,” the Ministers said, expressing confidence that its bilateral partners would step in.

China is the Maldives’s largest creditor and India is another key lender. The two countries are financing a host of infrastructure projects that the government hopes will aid better connectivity and economic development. “Both India and China are very sensitive to our challenge and are willing to help,” Mr. Zameer said, pointing to “many options” on the table, including a possible debt freeze, currency swaps, and local currency settlements. “We will discuss these as and when there is a need.”

On Friday (September 13, 2024), the Maldives’s Ministry of Economic Development & Trade signed an agreement with the People’s Bank of China to establish a local currency settlement framework. Authorities are in talks with India for a similar arrangement.

“We are already taking all the necessary steps including reform of State-Owned Enterprises and our health sector. We are switching from blanket to targeted subsidies and rationalising our public expenditure,” Mr. Shafees said. Following the downgrade by Moody’s, the Finance Ministry said it was engaging with all its bilateral and multilateral partners to meet the financing requirements, and that a “strong performance” in the vital tourism sector was expected to boost growth.

Tourist arrivals have seen an uptick in 2024. Chinese arrivals lead the list, contributing 12% of visitors, while arrivals from India declined sharply from 11% of visitors to 6%, the World Bank said in its May 2024 update. The period coincides with strained bilateral ties between India and the Maldives, on the heels of the “India Out” campaign around Mr. Muizzu’s election last year, and amid controversial statements made by two junior ministers in his government that triggered a call to “boycott Maldives” within India.

Emphasising that relations have since seen a marked improvement, Mr. Zameer said Indian tourist arrivals are “picking up very well” and the neighbours are keen to strengthen ties. “We have had high-level engagement”, including External Affairs Minister Jaishankar’s visit to the Maldives in August, and the countries’ “very pragmatic” leaders have addressed the “initial mistrust”, he said. President Muizzu is expected to travel to New Delhi soon on his first bilateral visit, although he has Mr. Modi on the sidelines of other global meets and at Mr. Modi’s swearing in ceremony this year.

“I think India-Maldives ties now are as good as they were during President Maumoon Abdul Gayoom’s time, which is considered the best time in our relationship,” Mr. Zameer added.

Male:

Maldives President Mohamed Muizzu thanked India for its support of the island nation in easing its debt repayment and affirmed hope that New Delhi and Male would forge stronger ties and sign a free trade agreement.

Muizzu was addressing the official Independence Day function in the Maldives on Friday. During his address, he commended the administration’s foreign policy, celebrating eight months of ‘diplomatic success,’ according to the Maldives President Office.

President Muizzu expressed gratitude to India and China for their support in easing the Maldives’ debt repayment, thereby enabling the country to ensure economic sovereignty.

Emphasising the need to alleviate the local shortages of US dollars, he said that the Maldives government is negotiating currency swap agreements with both New Delhi and Beijing.

The Maldives President also announced that his administration is negotiating a Free Trade Agreement (FTA) with the United Kingdom and expressed hope to reach a similar agreement with India.

Notably, the Mohamed Muizzu government in the Maldives took a reconciliatory tone after ties between the two nations soured, leading to a diplomatic row.

Last month, President Muizzu also attended the oath ceremony of Prime Minister Narendra Modi, after he took office for the third consecutive term.

Earlier this year, Muizzu sought debt relief measures in the repayment of the hefty loans taken from the country over consecutive governments. He even stated that India will continue to remain the Maldives’ “closest ally” and emphasised that there was no question about it.

The loan amount owed by Maldives to India by the end of last year stood at 6.2 billion Maldivian Rufiyaa, according to Maldives-based The Edition.

Notably, earlier this year, the International Monetary Fund (IMF) warned Maldives that it faces a high risk of debt distress without significant policy changes.

Notably, Maldives President Mohamed Muizzu has displayed ‘anti-India’ rhetoric and he even ran the electoral campaign on the line of ‘India Out’. The removal of Indian troops from the country was the main election campaign of Muizzu’s party.

Since coming to power, he has taken several steps that have been unconventional from the point of view of India-Maldives ties.

He departed from a long convention by not visiting India on the first official visit and instead went to Turkey, followed by China. During his visit, the two countries elevated their ties to comprehensive strategic cooperative partnership and signed around 20 agreements.

Last December, the Maldives said it would not renew the Hydrographic Survey agreement made with India.

After Muizzu government officially requested India to withdraw troops, the Indian government set up a High-Level Core Group to discuss the matter. The withdrawal of Indian troops was completed in May this year.

Days after the withdrawal of Indian soldiers, Maldives Defence Minister Ghassan Maumoon also acknowledged that the country’s defence forces were capable of operating the three aircraft donated by India,

The row between New Delhi and Male erupted after three Maldivian deputy ministers made derogatory comments against Prime Minister Narendra Modi, over his pictures from the visit to Lakshadweep.

PM Modi had called for the Indian island cluster to be developed as a destination for beach tourism and promotion of domestic tourism.

The matter snowballed into a major diplomatic row, with New Delhi summoning the Maldivian envoy and registering a strong protest against the viral posts. The three deputy ministers were suspended and they remain under suspension with pay.

Maldives Tourism Ministry data showed, earlier this year, that the number of Indian tourists visiting the Maldives dropped by 33 per cent as compared to last year.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Prime Minister Narendra Modi in a meeting with President of Maldives Mohamed Muizzu.
| Photo Credit: PTI

The Maldives military still does not have pilots capable of operating three aircraft donated by India, Defence Minister Ghassan Maumoon has acknowledged, days after 76 Indian defence personnel left the island nation at the instance of Maldives President Mohamed Muizzu.

Mr. Ghassan made the remarks at a press conference held at the President’s Office here on May 11 to brief the media about the withdrawal of Indian soldiers stationed in the Maldives to operate two helicopters and a Dornier aircraft and their replacement with civilians from India.

Responding to a question from a journalist, Mr. Ghassan said there were no Maldivian soldiers with the Maldives National Defense Force (MNDF) who could operate the three aircraft donated by the Indian military despite some soldiers who began training to fly them under agreements formed by previous governments.

“As it was a training that required passing various stages, our soldiers had not reached completion due to various reasons. Therefore, there aren’t any people in our force at the moment who are licensed or fully operational to fly the two helicopters and Dornier aircraft,” Mr. Ghassan was quoted as saying by the Adhadhu.com news portal.

The relations between the two countries came under severe strain after Mr. Muizzu, a pro-China leader, insisted on the withdrawal of all Indian military personnel operating the three aviation platforms in the island nation by May 10. India has already withdrawn 76 military personnel.

However, the Maldives government has no intention of removing the doctors from India at Senahiya military hospital, a Maldivian media report said.

Contrary to Mr. Ghassan’s remarks, when the current administration’s senior officials were in the opposition during the past five years, they criticised the previous government and claimed that there were capable pilots in the MNDF, the Adhadhu.com report noted.

Training Maldivians was the main reason for the arrival of Indian soldiers with the helicopters donated during former presidents Mohamed Nasheed and Abdulla Yameen’s governments and the Dornier aircraft brought during former President Ibrahim Mohamed Solih’s government, it said.

Despite the failure to complete the training to date, Foreign Minister Zameer said on May 11 that the agreement to replace the Indian soldiers with civilians also included provisions for training local pilots.

The Opposition parties have demanded a probe and impeachment of Maldives President Mohamed Muizzu following the leaked report of his alleged corruption from 2018. File
| Photo Credit: AP

Ahead of the parliamentary polls in the Maldives, the Opposition parties have demanded a probe and impeachment of President Mohamed Muizzu following the leaked report of his alleged corruption from 2018, a charge dismissed by him.

Elections to the Majlis are to be held on Sunday and the atmosphere has been vitiated by the trading of charges between the main Opposition the Maldivian Democratic Party (MDP) and Mr. Muizzu’s People’s National Congress (PNC).

Local media reports have highlighted that the political storm started on Monday with an anonymous handle ‘Hassan Kurusee’ posting on social media X leaked intelligence reports, including documents prepared by the Financial Intelligence Unit (FIU) of the Maldives Monetary Authority and the Maldives Police Service that allegedly linked President Muizzu to corruption.

“These reports, dated circa 2018, claim irregularities in money transfers to President Muizzu’s personal bank account, highlighting 10 critical red flag indicators of financial misconduct. These indicators suggest involvement with politically exposed persons, embezzlement, structured transactions, and the use of corporate entities to hide fund origins,” news portal Maldives Republic (mvrepublic.com) reported.

The allegations soon created a political storm with several reactions pouring in on various social media channels. News portals and newspapers, however, tread with caution. The opposition Maldivian Democratic Party (MDP) and People’s National Front (PNF) demanded an investigation into the matter.

Former Vice President Dr. Mohamed Jameel Ahmed urged Mr. Muizzu’s impeachment following the leaked intelligence reports. Taking to his social media handle X, Dr. Jameel reposted these documents, emphasising the need for accountability at all levels of governance.

Apart from demanding Mr. Muizzu’s impeachment, Dr. Jameel, a senior member of the Progressive Party of Maldives, “also accused President Muizzu of extensive corruption in his flagship Ras Male’ development project and alleged excessive spending on public relations. Dr. Jameel has called on President Muizzu to cooperate with independent investigations into these allegations,” mvrepublic.com said.

The news portal also claimed that this was the first time an FIU report was leaked and said, there has been no official confirmation or response from government bodies regarding the legitimacy of the reports or the allegations.

Adhadhu.com reported that President Muizzu responded late on Tuesday night to corruption allegations declaring that the Opposition “cannot show any wrongdoing on his part regardless of how far attempts to implicate him are taken” and also accused the Opposition of leaking the reports out of desperation.

“The same allegations had been made during his campaigns for mayor and President,” he said adding, the response would also be the same as before.

“While you attempt to pin something on me like this, you couldn’t do it before and you can’t do it now. There’s nothing you can show against me no matter how far you take this,” Adhadhu.com said, quoting the President.

Atoll Times gave a detailed account of what President Muizzu said in his defence, including how he would “never compromise the rights of the people and that no matter how many such allegations are made, nobody will be able to show anything done in such a manner.”

“The last five years Opposition was in government, if there was anything done wrong, it would have come to light,” Mr. Muizzu said.

“The President’s remarks came after the Opposition Maldivian Democratic Party (MDP) and People’s National Front (PNF) called on the relevant authorities to investigate the serious allegations against the President. But no government investigative agency has yet to comment on the issue,” Adhadhu.com reported.

A total of 368 candidates are contesting for 93 seats in this year’s parliamentary elections on April 21, according to media reports. The outcome of the elections will determine whether the Opposition parties can act against President Muizzu, who assumed charge in November last year.

Male:

Ahead of the parliamentary polls in the Maldives, the opposition parties have demanded a probe and impeachment of President Mohamed Muizzu following the leaked report of his alleged corruption from 2018, a charge dismissed by him.

Elections to the Majlis are to be held on Sunday and the atmosphere has been vitiated by the trading of charges between the main opposition the Maldivian Democratic Party (MDP) and the Muizzu’s People’s National Congress (PNC).

Local media reports have highlighted that the political storm started on Monday with an anonymous handle ‘Hassan Kurusee’ posting on social media X leaked intelligence reports, including documents prepared by the Financial Intelligence Unit (FIU) of the Maldives Monetary Authority and the Maldives Police Service that allegedly linked President Muizzu to corruption.

“These reports, dated circa 2018, claim irregularities in money transfers to President Muizzu’s personal bank account, highlighting 10 critical red flag indicators of financial misconduct. These indicators suggest involvement with politically exposed persons, embezzlement, structured transactions, and the use of corporate entities to hide fund origins,” news portal Maldives Republic (mvrepublic.com) reported.

The allegations soon created a political storm with several reactions pouring in on various social media channels. News portals and newspapers, however, tread with caution. The opposition Maldivian Democratic Party (MDP) and People’s National Front (PNF) demanded an investigation into the matter.

Former Vice President Dr Mohamed Jameel Ahmed urged Muizzu’s impeachment following the leaked intelligence reports. Taking to his social media handle X, Jameel reposted these documents, emphasising the need for accountability at all levels of governance.

Apart from demanding Muizzu’s impeachment, Jameel, a senior member of the Progressive Party of Maldives, “also accused President Muizzu of extensive corruption in his flagship Ras Male’ development project and alleged excessive spending on public relations. Jameel has called on President Muizzu to cooperate with independent investigations into these allegations,” mvrepublic.com said.

The news portal also claimed that this was the first time an FIU report was leaked and said, there has been no official confirmation or response from government bodies regarding the legitimacy of the reports or the allegations.

Adhadhu.com reported that President Muizzu responded late on Tuesday night to corruption allegations declaring that the opposition “cannot show any wrongdoing on his part regardless of how far attempts to implicate him are taken” and also accused the opposition of leaking the reports out of desperation.

“The same allegations had been made during his campaigns for mayor and President,” he said adding, the response would also be the same as before.

“While you attempt to pin something on me like this, you couldn’t do it before and you can’t do it now. There’s nothing you can show against me no matter how far you take this,” Adhadhu.com said, quoting the President.

Atoll Times gave a detailed account of what President Muizzu said in his defence, including how he would “never compromise the rights of the people and that no matter how many such allegations are made, nobody will be able to show anything done in such a manner.” “The last five years opposition was in government, if there was anything done wrong, it would have come to light,” Muizzu said.

“The President’s remarks came after the opposition Maldivian Democratic Party (MDP) and People’s National Front (PNF) called on the relevant authorities to investigate the serious allegations against the President. But no government investigative agency has yet to comment on the issue,” Adhadhu.com reported.

A total of 368 candidates are contesting for 93 seats in this year’s parliamentary elections on April 21, according to media reports. The outcome of the elections will determine whether the opposition parties can act against President Muizzu, who assumed charge in November last year. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

External Affairs Minister S. Jaishankar and Maldives Foreign Minister Moosa Zameer. File
| Photo Credit: PTI

Maldivian Foreign Minister Moosa Zameer on April 6 said India’s gesture to renew the quota to allow the export of certain quantities of essential commodities for his nation signifies the longstanding bilateral friendship and the commitment to further expand trade and commerce.

“India allowed the export of certain quantities of essential commodities for the year 2024-25 at the request of the Maldives government,” the Indian High Commission said, in Male, on April 5.

Announcing the move through a post on social media platform X, the Indian High Commissioner said that this was being done “under a unique bilateral mechanism” under which the quotas for each of these items have been revised upwards.

“The approved quantities are the highest since this arrangement came into effect in 1981,” the notice by the mission said. Mr. Zameer took to X to thank India for the move.

“I sincerely thank EAM @DrSJaishankar and the Government of #India for the renewal of the quota to enable #Maldives to import essential commodities from India during the years 2024 and 2025,” Mr. Zameer wrote.

“This is truly a gesture which signifies the longstanding friendship, and the strong commitment to further expand bilateral trade and commerce between our two countries,” he said.

External Affairs Minister S. Jaishankar responded to Zameer’s post, saying India stands firmly committed to its Neighbourhood First and SAGAR policies.

Security and Growth for All in the Region (SAGAR) is India’s policy or doctrine of maritime cooperation in the Indian Ocean region. India’s ‘Neighbourhood First’ Policy underlines the renewed primacy that the country seeks to attach to its neighbouring countries.

The announcement for the renewal of the quota comes amidst a diplomatic row between the two countries since November last year when President Mohamed Muizzu, known for his pro-China leanings, within hours of taking the oath demanded India to repatriate its 88 military personnel from his country.

The relations further deteriorated when three Maldivian officials made crass comments after Prime Minister Narendra Modi posted photos and videos of the Lakshadweep Islands resulting in a heavy backlash by Indians, including many celebrities. #BoycottMaldives campaign resulted in a significant decline in Indian tourists to the island nation too.

The 1981 India and Maldives trade agreement provides for the export of essential commodities. According to the records from the Indian High Commission, growing from modest beginnings, India-Maldives bilateral trade crossed the $300 million mark for the first time in 2021, which further crossed the $500 million mark in 2022.

According to Friday’s announcement, there has also been an increase of 5% in the quotas for eggs, potatoes, onions, sugar, rice, wheat flour and dal (pulses).

Last year as well, India continued the export of rice, sugar and onions to the Maldives despite a worldwide ban on export of these items from India. “India remains strongly committed to supporting human-centric development in the Maldives, as part of its ‘Neighbourhood First policy,” it said.

“The quota for river sand and stone aggregates, crucial items for the booming construction industry in the Maldives, has been increased by 25% to 10,00,000 MT each,” it added.

Surrounded by the ocean, the islands in the Maldives and the many atolls don’t have enough river sand to support their construction industry, hence the need for importing sand and stone aggregates to the country.