India: Modi boosts Maldives ties as China looms

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Indian Prime Minister Narenda Modi on Saturday wrapped up a two-day visit to the Maldives during which he strengthened diplomatic and economic ties with the Indian Ocean island nation which has increasingly been drifting into China's orbit.

After being elected to office on an anti-India, pro-Chinaplatform in 2023, Maldives President Mohamed Muizzu insisted on, and secured, the withdrawal of Indian military personnel who operated search-and-rescue aircraft in the archipelago.

Tensions escalated last year when Muizzu visited China before India, a move widely interpreted in New Delhi as a diplomatic snub. In response, Indian moves to promote tourism off its own south coast were seen by Maldivians as an attempt to lure wealthy Indian tourists away from their country.

Muizzu has since toned down his anti-India rhetoric, however, and said in a banquet speech alongside Modi on Friday: "India has long stood as the Maldives' closest and most trusted partner."

Modi's visit coincided with celebrations marking the 60th anniversary of the Maldives' independence from British rule in 1965, but also amid growing concern about the Maldives' struggling economy and foreign exchange shortage.

What has India offered the Maldives?

Shortly after his arrival on Friday, Modi unveiled a $565 million credit line and announced a reduction in repayments of an earlier credit line from $51 million to $29 million annually. The two countries also discussed a potential free-trade agreement.

"We deeply value the friendship of India and are grateful for the timely assistance your country has extended to us in moments of need," said Muizzu, adding later on social media that Modi's visit had set "a clear path for the future of Maldives-India relations."

During his visit, Modi also inaugurated several India-funded infrastructure projects, including a new defense ministry headquarters, new roads and a 4,000-unit housing scheme.

"India remains committed to supporting the aspirations of the Maldivian people," Modi wrote on social media. "Our relationship continues to grow, shaped by people-to-people ties and cooperation in various sectors."

Key among those sectors are key Indian Ocean shipping lanes, many of which pass through the 1,192 islands which make up the Maldives, stretching across 800 kilometers (500 miles) of the equator.

The pristine beaches may have helped the Maldives establish a reputation for luxury tourism, but the region is also a geopolitical hotspot.

Edited by: Jenipher Camino Gonzalez

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