In a significant shift, Maldives President Mohamed Muizzu has referred to India as its "closest ally" and expressed hope for debt relief to manage the substantial loans owed to New Delhi by successive Maldivian governments.
Despite his perceived pro-China stance, Muizzu emphasized that he has refrained from actions or statements that could strain the relationship between the Maldives and India, according to a report by the Edition newspaper.
The total loans obtained from the Export and Import Bank of India (Exim Bank) amount to USD 1.4 million (MVR 22 million), with the Maldives owing a cumulative MVR 6.2 billion to India by the conclusion of 2023.
In his inaugural interview since assuming office last year, Muizzu conveyed, “The conditions we have inherited are such that there are very large loans taken from India. Hence, we are holding discussions to explore leniencies in the repayment structure of these loans”.
Muizzu's statements follow recent remarks by India's External Affairs Minister S. Jaishankar, indirectly addressing Muizzu's previous comment on "big bullies," asserting, "Big bullies do not offer $4.5 billion aid or vaccine or food when neighboring countries are in distress."
Tensions escalated between the two nations after Muizzu formally requested New Delhi to withdraw its military personnel from the Maldives by March 15, 2024.
This development unfolded shortly after Muizzu's return from China, where he made critical comments about India, stating, "We might be small, but that does not give you the license to bully us."
The first contingent of Indian military personnel departed the island nation as scheduled, and Muizzu has ordered the complete withdrawal of all 88 military personnel overseeing the three Indian aviation platforms by May 10.
Muizzu clarified that his actions aim to foster Maldives' self-sufficiency, asserting that portraying these actions as distancing from India or gravitating toward China is highly irresponsible.
“Tt is highly irresponsible to attempt to portray these actions as either distancing the country from India or moving the country towards China.” he said.
“No country can do everything on its own, not even the biggest country. Even America has to depend on other countries. China does, too. India, as well. However, do Maldivians not deserve to attempt to do whatever we are able to do by ourselves, independently?” he added.
Highlighting India's substantial investment in Maldivian projects, media reports cite government documents indicating nearly 771 crore rupees spent during the current fiscal year, with allocations of Rs 183 crore in fiscal 2022-23 and an initial Rs 600 crore earmarked for next year.
As a key beneficiary of India's Neighbourhood First policy and a pivotal maritime partner in the Indian Ocean Region (IOR), the Maldives holds a significant position in bilateral relations.
The relationship encountered friction following purported derogatory remarks made by three of Muizzu's junior ministers directed at Prime Minister Narendra Modi.
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