• The evolving ties between India and the Maldives have encountered challenges, notably with President Mohamed Muizzu's tenure, which commenced in November 2023.
• Prime Minister Narendra Modi's visit to Lakshadweep heightened tensions, particularly impacting the Maldives' tourism industry, a cornerstone of its economy. Despite historic cooperation in trade, defense, and tourism since Maldives' independence in 1965, strained relations emerged with Muizzu's pro-China stance, evident in the expulsion of Indian soldiers.
• Geopolitically, Maldives' strategic location in the Indian Ocean underscores its significance for India, while cultural affinities and tourism strengthen bonds. However, recent controversies, including disrespectful remarks towards PM Modi, underscore ongoing challenges, despite diplomatic efforts to mend relations.

Under the Neighbourhood First Policy, Maldives holds strategic importance in the Indian Ocean region.

• India recently extended $50 million in interest-free aid, following the withdrawal of Indian troops.
• This gesture signifies India's commitment to balanced relations with its neighbours, particularly Maldives.
• However, Maldives faces a debt crisis, with IMF warning of escalating debt, already reaching $8.7 billion, exceeding its $6.5 billion GDP. To alleviate this, Maldives agreed to trade with India, settling payments in local currency, moving away from the US Dollar. 



Recent steps taken by India to improve its relation with Maldives:

• A Budgetary aid proved by India which is 50 million USD.
• India allows limited export of rice, wheat, sugar, onion despite tensions.
• Even though it is export but it came at the time when most of the countries are refusing to export the basic food items especially China.
• The reason for this is very clear that shortage of food in the region and China had to support its large population also.
• India also allowed the limited export of the construction items including the river sand which is the basic for construction.

Now despite the tensions India is supporting Maldives with food support and financial aid. Even the export of construction materials will support the economy of Maldives.

As we know Maldives is formed by atolls and they are also sinking and even basic agriculture is not possible there. Its economy is dependent on tourism.

Also the basic reason for exporting the construction material and food stuff is the Neighbourhood first policy of India.

Also to balance the dominance of China in the region it is possible to show bigger heart and help sustain other economies also. 

The rise in global warming will lead to sinking of the about 80% area of Maldives and it will become difficult to live there as per the reports, so it is important to help the people out there on the basic humanitarian grounds as India shares cultural affinity as well as long bilateral ties.

The recent visit of the foreign minister of Maldives in India and they are planning to have a huge marketing in India so that Maldives will attract Indian tourists. There is 42% dip in tourism after the tensions and India out campaign.