Maldives President Mohamed Muizzu has agreed to let India deploy defence platforms and assets in the Maldives, marking a turnaround in his government’s approach to New Delhi. This decision comes following Muizzu ordered the withdrawal of all Indian military personnel from the Indian Ocean archipelago, highlights the complex geopolitics of the region and the Maldives growing reliance on India amidst a severe economic crisis.
President Muizzu’s decision to allow India to deploy defence platforms in the Maldives marks a significant shift in policy, especially considering his previous leadership role in the controversial ‘India-Out’ campaign.
The campaign, which gained momentum during the 2023 presidential election, called for the removal of Indian military personnel stationed in the Maldives for humanitarian purposes, arguing that their presence undermined the country’s sovereignty.
Muizzu’s government, upon taking office, demanded the withdrawal of all Indian troops by May 2024. This included personnel who operated the Dornier aircraft and Advanced Light Helicopters that India had gifted to the Maldives for emergency evacuations from its remote islands. At the time, the move was widely interpreted as a nod to China, which has been keen to expand its influence in the Maldives, a strategically located country in the Indian Ocean.
PM Modi stated the significance of cooperation in training and capacity-building for the MNDF. ‘Together, we will strive for stability and prosperity in the Indian Ocean region. We will enhance our cooperation in hydrography and disaster response.
India is playing a pivotal role in helping the Maldives avert a looming debt default. One of the major outcomes of the Modi-Muizzu meeting was a currency swap agreement signed between the Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA). Under the SAARC Currency Swap Framework for 2024-27, the RBI will provide the Maldives with access to $400 million under the USD/Euro Swap Window and Rs 3,000 crore under the INR Swap Window. This agreement, which is valid until June 2027, is expected to provide critical liquidity support to the Maldives, helping it manage short-term foreign exchange requirements and balance-of-payments stress.
Comments