The Maldives is set to launch India’s RuPay payment service soon. The relation between the two countries has started to deteriorate in January this year after a social media clash which later translated into diplomatic row. Since then the number of Indian tourist in Maldives has significantly declined. But now ties between the two is on repairing mode.
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India-Maldives Relations are on the Way of Improvement
The ties between India and Maldives are seemed to be turning back on the track after the visit of Maldivian minister of economic development and trade Mohamed Saeed. He recently talked about the introduction of India’s RuPay service in his country.
Speaking to state-run PSM News this week, Saeed said the “upcoming launch of India’s RuPay service is anticipated to further bolster the Maldivian rufiyaa (MVR)”.
Furthermore Saeed said , the card will officially be used for Rupee-denominated transactions within the Maldives, according to PTI.
Muizzu stated on January 13, following his five-day visit to China, that although the Maldives “may be a small island nation, that does not allow others (India) to bully” the nation, amid rising tensions between Male and New Delhi.
He had stated that the Maldives “is not in anyone’s backyard,” seemingly in reference to India.
Since then, the president of the Maldives has softened his style.
President Muizzu, who is generally regarded as a pro-China figure, sent greetings on January 26, the anniversary of India’s 75th Republic Day, recalling the “centuries-old friendship” between the two countries, which is based on “mutual respect and a deep sense of kinship.”
Muizzu had stated in March that India would continue to be the Maldives’ closest ally and that there was no doubt about it in his first interview following his appointment as president in November of last year.
He stated, “Everything can be achieved through discussions and deliberations,” in contrast to his previous hard-line position. That’s my belief, anyway.
India's Rollover of $50 Million Treasury Bill to Maldives
The Maldivian foreign minister Moosa Zameer visited India from 8-10 May. India announced the rollover of a $50 Million treasury bill for Maldives for another year through the State Bank of India. This is a kind of budgetary support to Maldivian government from India.
The Maldivian foreign minister, Mr. Zameer extended gratitude to External Affair Minister (EAM) Dr. S Jaishankar and Government of India. He wrote on X, “I thank EAM @DrSJaishankar and the Government of India for extending vital budgetary support to the Maldives with the rollover of $50 million Treasury Bill. This is a true gesture of goodwill which signifies the longstanding friendship between Maldives and India.”
This budgetary support from India to Maldives came on the request of Maldivian foreign minister.
EAM Jaishankar said during Zameer’s New Delhi visit that India’s relations with Maldives rely on “mutual interests” and “reciprocal sensitivity”.
“The world is today passing through a volatile and uncertain period. In such times, as we saw during COVID, natural disasters and economic difficulties, close partnerships with neighbours are of great value…It is in our common interest that we reach an understanding on how best we take our relationship forward,” Jaishankar said, as per The Hindu.
“We reflected on our long history of bilateral partnership shared by mutual respect and understanding,” Zameer stated in reference to his meeting with Jaishankar.
He was the first Maldivian high official to visit India since President Mohamed Muizzu took office in November of last year.
How did India-Maldives Relations get Sour?
The diplomatic row between India and Maldives started when a clash on social media triggered.
It all started when three Maldivian officials made outrageous comments on on India and PM Modi after he posted the photos and videos of the Lakshadweep islands on his X account on January 6.
Following their comments, social media users in India launched a campaign to “boycott the Maldives,” creating an uproar. Although the Muizzu administration intervened to save face by dismissing the three officials, the relationship had already strained by that point.
The difference between the two nations hurt the Maldives’ tourism industry because lesser Indians were visiting the island nation.
Maldivian tourism minister Ibrahim Faisal told the news agency PTI, “We have a history,” highlighting the historical connections between the two countries. Additionally, our recently elected government is eager to collaborate (with India). We constantly advocate for harmony and a welcoming atmosphere. New Indian residents will get a warm welcome from our people and the administration. In my capacity as the Minister of Tourism, I would like to encourage Indians to visit the Maldives. Tourism is essential to our economy.
India is one of the main tourist destinations for the nation of the Indian Ocean, whose economy is strongly dependent on the travel industry.
Conclusion
Although Muizzu won his election on the basis of India out campaign but Maldives cannot afford to ditch India anyway. Maldives economy is mainly based on tourism and India has the highest stake in this sector in terms of number of tourist. But now Indians preferred to go to Sri Lanka or Lakshadweep Islands rather than Maldives.
So it will be interesting to see how Maldivian government will repair their relation with India and how will Indians react after that.
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