Prime Minister Narendra Modi will attend the Maldives Independence Day conference on Saturday (26 July, 2025) as the chief guest. This comes as quite a surprise to those commentators who had genuinely believed that the ‘India Out’ movement had completely driven India out of the Maldives.
Earlier today, PM Modi landed in Male to a rousing welcome by President Muizzu and his cabinet colleagues.
PM Modi lands in Male, Maldives to a warm welcome by President Mohamed Muizzu, Foreign Minister, Defence Minister, Finance Minister and Minister of Homeland Security pic.twitter.com/p3ASDmvQvB
— Gplus.com (@Gplus_com) July 25, 2025
It is also noteworthy that PM Modi is the first head of state to visit the Maldives after Mohamed Muizzu became the President. Let us understand why the leader who came to power by running the ‘India Out’ campaign is now rolling out the red carpet for Modi.
Over the past two years, there has been a notable change in the relationship between India and the Maldives. The “India Out” movement, which aimed to protest New Delhi’s presence in the archipelago, formerly took the stage, but under Prime Minister Narendra Modi’s leadership, the focus has since changed to renewed cooperation and increased trust. In addition to stabilising the Maldivian economy, India’s financial assistance. Specifically, the $400 million currency swap from the Reserve Bank of India (RBI) and the $100 million treasury bond subscription from State Bank of India (SBI) has restored India’s standing as the Maldives’ most dependable partner.
This article looks at how India navigated the tumultuous waters of anti-India rhetoric, economic obstacles, and growing Chinese influence to reclaim its position as the Maldives’ key strategic ally.
India & Maldives: A historic partnership
A long-standing alliance based on trade, cultural proximity, and strategic security in the Indian Ocean exists between India and the Maldives. The Maldives is a crucial ally in India’s maritime security strategy because of its strategic location close to important shipping lanes. India was one of the first countries to recognise and establish diplomatic relations with the Maldives following its independence in 1965.
India’s timely aid during the 1988 coup (Operation Cactus) resulted in trust and positive bilateral relations with the Maldives. Withdrawing our forces when no longer needed alleviated concerns about Indian supremacy and territorial claims. India was the first to aid Maldives following the 2004 Tsunami and the water crisis in December 2014. Three crises (In 1988, 2004, and 2014) demonstrated India’s proximity and ability to respond to the Maldives’ crisis, which has been acknowledged by the Maldivian government and people. In January 2020, India sent 30,000 doses of measles vaccine to avert an epidemic in the Maldives. Additionally, during the COVID-19 pandemic, India provided prompt and thorough aid to the Maldives, demonstrating its status as a “first responder”.
Development assistance, such as housing projects, infrastructure construction, and scholarships for Maldivian students, has also helped to strengthen bilateral ties.
The ‘India Out’ campaign
The “India Out” movement, led by sections of the opposition, characterised India as an intrusive presence in Maldivian internal and security issues. The campaign claimed that Indian military forces stationed in the Maldives posed a threat to sovereignty, despite the fact that they were mostly involved in humanitarian and disaster relief efforts.
During Jaishankar’s visit in February 2021, India and the Maldives agreed to build the Uthuru Thilafalhu (UTF) harbour. At the time, the Union Minister tweeted that the project would “strengthen Maldivian Coast Guard capability” and that the two countries were “partners in development and partners in security.” During the same visit, India provided a $50 million line of credit for defence purchases. Anti-India campaigners in the Maldives also claimed that Indian troops were stationed on a fast patrol vessel that India recently gifted to the Maldives Coast Guard and was commissioned as CGS Huravee earlier that week, a claim refuted by Mariya Didi (Former Defense Minister), who had stated that the Indian crew was only on the ship in Male for training purposes and that it would be manned entirely by Maldivians from now on.
Since Muizzu took power in November 2023, the Maldives took a more pro-China stance while distancing itself from India, its historic ally. During his presidential campaign, Muizzu advocated for a “India Out” campaign to reduce New Delhi’s influence and presence in the country.
There were diplomatic repercussions between New Delhi and the Maldives following Prime Minister Narendra Modi’s visit to the Lakshadweep islands in January 2024. This exacerbated an already tense relationship that has gotten worse since Maldivian President Mohamed Muizzu took office in November 2023. When three deputy ministers from Muizzu’s administration entered the social media discussion and made derogatory comments about Modi, the situation deteriorated. India was not appeased when its Foreign Ministry issued a statement saying the remarks reflect “opinions [that] are personal and do not represent the views of the Government of Maldives” and suspended three deputy ministers who made the comments. A social media response spearheaded by celebrities and internet users calling for a travel boycott of the Maldives followed India’s Ministry of External Affairs’ summons of the Maldivian ambassador to voice its concerns.
From defiance to dependence: Maldives welcomes PM Modi
The Maldives’ growing economic problems may be the main cause of Muizzu’s conciliatory discourse towards India. India has always been “one of the closest” allies and “invaluable” partners, enabling and delivering aid “whenever Maldives has needed it,” according to President Mohamed Muizzu’s Aug 2024 acknowledgement. He made these remarks during a ceremony at the President’s Office to hand over completed water supply and sewerage facilities on 28 Maldives islands, which were funded by the Government of India’s Line of Credit Facility via EXIM Bank of India.
In order to handle debt and import requirements, the Maldives’ dangerously low foreign reserves were strengthened in October 2024 by a historic currency swap arrangement with the Reserve Bank of India that gave them access to USD 400 million and INR 30 billion under the SAARC framework (2024–2027). Following a USD 50 million Treasury Bill rollover in May 2025 at the request of the Government of the Maldives, India pledged USD 69 million in grant assistance in March 2025.
Two high-profile trips in early 2025 appear to bode well for bilateral relations between India and the Maldives. Given that bilateral ties were at their lowest point last year, the visits by Maldivian Foreign Minister Abdulla Khaleel and Defence Minister Ghassan Maumoon were especially crucial. Minister Khaleel, in an interview, separated the incumbent government leadership from former President Abdulla Yameen’s “India Out” campaign, which the current administration participated in as the Opposition. “As such, the government will completely disassociate with isolated comments from such figures, whether they represent the government or the Opposition,” the minister stated.
President Muizzu aimed to strengthen the Maldives’ relationship with India, according to Foreign Minister Khaleel. He had said, “In this regard, our President has repeatedly stated that he is strengthening his relationship with India and the Indian people.”
As the son of Maumoon Abdul Gayoom, the archipelago nation’s longest-serving President (1978–2008), Defence Minister Ghassan Maumoon’s subsequent visit (Jan 8-10) was equally significant, as he acknowledged that India is the first responder during times of crisis faced by his country over the past decades. In order to put down a 1988 coup attempt against the government, New Delhi sent in military personnel post-haste during Maumoon Gayoom’s rule.
Similarly, India’s Defence Minister Rajnath Singh stated during the defence talks that their discussions gave India-Maldives relations “new vigour.” India also reaffirmed its commitment to bolstering the Maldives’ defence capabilities, which includes supplying defence gear and training troops. Additionally, India announced a US$4 million grant to outfit the Maldives National Defence Force (MNDF) with certain items.
Notwithstanding early tensions, the Muizzu government understood the strategic and economic importance of keeping close relations with India. High-level bilateral discussions and Prime Minister Modi’s outreach initiatives, which prioritised commerce, security, and mutual growth, marked a turning point.
Looking ahead: A resilient partnership
Malé’s practical approach aligned with India’s emphasis on “Neighbourhood First” and SAGAR (Security and Growth for All in the Region) policies. Symbolic actions like skill development, scholarships, and partnerships on digital payments (UPI and RuPay) have further enhanced India’s image as an ally in the Maldives’ long-term development narrative.
The transition from “India Out” to “Modi In” shows how resilient India-Maldives ties are. India has maintained its position as the Maldives’ most reliable partner through cultural engagement, strategic patience, and financial diplomacy. Although managing Malé’s domestic politics and balancing China’s influence still present difficulties, the renewed partnership points to a promising future.
This partnership is not only about strategic interests but also about shared prosperity and security in the Indian Ocean area because of India’s dedication to being a first responder and long-term development partner.
