There is tension in the relations between the two countries since Mohammed Muizzu took over as the President of Maldives last year. Many times there was a lot of tension between the two countries, but despite all this, India’s ongoing projects in Maldives have gained momentum. This is because India has continued financial assistance to Maldives. India has allocated around Rs 7 billion for projects in the Maldives this fiscal year ending in March, according to official records. This is almost double the budgeted amount of Rs 4 billion. India has increased development assistance to Maldives despite strained relations between the two countries.
Maldivian President Mohammed Muizzu has extended a hand of friendship towards China, demanding the removal of Indian troops from his/her country. This weakened the relations between India and Maldives but it has not affected the development cooperation between the two countries. Due to India’s continued support to Maldives, the projects are progressing at a fast pace. These efforts include the construction of roads, bridges and airports, aided by lines of credit from India. Following the request of Mohammad Muizzu, the Indian government has agreed to withdraw its troops from Male by May. On the other hand, emphasis has also been laid on the humanitarian and medical assistance provided by the Indian side. India’s support to Maldives in terms of financial allocation is second only to neighboring Bhutan.
India continues to provide financial assistance to the Maldives but is concerned about Male’s growing ties with China. Recently Maldives has allowed a Chinese research ship to visit one of its ports. India views the presence of external powers, especially China, in the region as a security threat. Despite these challenges, India remains committed to development assistance to Maldives.