India Pledges $ 565 Million to Maldives to Boost Defense, Infrastructure.

Prime Minister Narendra Modi has offered $565 million to the Maldives on Friday to bolster its defence forces and infrastructure in the small, yet strategically located, neighbour.

On his first official visit to the Indian Ocean archipelago since winning a third term last year, Modi stressed that India will remain the “first responder” for the Maldives, which has a population of around 525,000 people. “India will continue to support the Maldives in strengthening its defence capabilities”, Modi said, while further adding, “Peace, stability, and prosperity in the Indian Ocean region are our shared goals”.

Regional powerhouse India had been concerned that the Maldives was drifting towards the orbit of its rival China following the 2023 election of President Mohamed Muizzu on an anti-India platform.

Since coming to power, Muizzu has secured the withdrawal of a small contingent of Indian military personnel who operated two search-and-rescue helicopters and a fixed-wing reconnaissance aircraft based in the archipelago. However, he has since toned down his anti-India rhetoric.

Muizzu met with Modi twice last year in New Delhi, and both leaders vowed to begin a “new chapter” in bilateral ties.

Modi on Friday unveiled a $565 million credit line for the Maldives, which is facing a severe foreign exchange shortage despite its highly successful upmarket tourism industry. He has also inaugurated several infrastructure projects, including roads funded by India along with a 4,000-unit housing scheme.

Muizzu said the credit line from India would be used to strengthen the Maldives’ security forces, improve healthcare, housing, and education. “India’s continued assistance to the Maldives through the export of essential commodities is a key facet of our bilateral cooperation”, Muizzu said.

India remains apprehensive about China’s growing presence in the Indian Ocean, particularly in the Maldives and neighbouring Sri Lanka.

Global east–west shipping lanes pass through the nation’s chain of 1,192 tiny coral islands, stretching around 800 kilometres (500 miles) across the equator. India’s government has traditionally regarded the Maldives, along with Sri Lanka, to be within its sphere of influence.

Earlier the Indian government has approved a plan to build two military airfields near the Maldives months after its troops were ordered to leave the archipelago. An airfield to support the operations of fighter and transport aircraft will be constructed on the Minicoy islands, about 50 miles (80 kilometres) from the small island nation.

Moreover, an existing military facility on Agatti island in Lakshadweep will also receive an extended airfield that can be used both by the Indian Armed Forces and civil airliners. According to officials, the new airfields will provide the military with the opportunity to extend their area of surveillance and gain a tactical edge in the region. As reported, The Indian Air Force is expected to lead the project.

A Strategic Move?

Plans to build military infrastructure near the Maldives were announced as early as March, almost four months after the island nation asked India to withdraw its troops from its territories.

Pro-China Maldivian President Mohamed Muizzu has advocated for an “India Out” campaign, saying New Delhi’s influence is a threat to his country’s sovereignty. But the timing of the move raised suspicions in the international community, as Male has recently upgraded its defence ties with Beijing.

Concerns are mounting that the Asian military superpower could potentially use the island nation and Pakistan to assert its influence in the Indian Ocean. Building military installations near the Maldives will allow India to keep a close watch on growing Chinese activities in the region. But India has already indicated that any potential military presence in the Maldives by China would be viewed as a threat in its own backyard.

Team Maverick