India Maldives Row: Its Impact on Tourism and the China Factor

India’s relations with Maldives date back to 1976, when India became the first country to open a resident mission in Malé after Maldives gained complete political independence from the British in 1965. India always remained at the forefront whenever it received a distress call from its neighbour. India rescued the country during former President Maumoon Abdul Gayoom’s regime when a group of Maldivians led by businessman Abdullah Luthufi plotted to overthrow his government with the help of the People’s Liberation Organisation of Tamil Elam (PLOTE). India swiftly responded and undertook a military operation codenamed ‘Operation Cactus’ to flush out militants and restore the sovereignty of Maldives. India was the first to step forward during the crisis by rushing relief aid and providing assistance of INR 100 million each in the aftermath of the Tsunami and tidal surges in 2004 and 2007, respectively. Since the beginning, the friendship between both nations has strengthened through various initiatives India took in the education sector, banking and infrastructure development. Above all, Prime Minister Narendra Modi upheld the Maldives as India’s valued partner in the Indian Ocean region, and the relationship between the two countries is defined by shared strategic, security, and economic goals. India considers Maldives to be its critical neighbour in the Indian Ocean Region (IOR) and occupies a special place in the Modi government’s “Neighbourhood First” policy.

On the other hand, China considers the Maldives a precious ‘pearl’ in its “String of Pearls” construct in South Asia, a valuable ally supporting its modern Maritime Silk Route in the Belt and Road Initiative (BRI). China considers the island nation as strategically important for its interest in the IOR and has made substantial economic investments. It is to be noted that the current government in Maldives under President Mohamed Muizzu is a coalition of the People’s National Congress (PNC) and the People’s Party of Maldives (PPM) – the party of incarcerated former president Abdullah Yameen Abdul Gayoom’s who is known for his pro-China stand. During Yameen Abdul Gayoom’s regime, the Maldivian government terminated the USD 511 million project with GMR Male International Airport Limited (GMIAL), a Bengaluru-based GMR Infrastructure Limited subsidiary.
After GMR’s exit, the project later went to China’s Beijing Urban Construction Group. President Yameen also made controversial amendments in the constitution to China’s advantage, allowing foreign entities to own lands on investments of over USD 1 billion, provided 70% of the land is reclaimed from the sea. Soon after, China got engaged in infrastructure development in the island nation and built a 1.39 km-long Sinamale bridge linking the capital city of Malé to Hulhule island at the estimated cost of USD 200 million and undertook several other initiatives, including a housing project in Hulhumale on reclaimed land. It also took possession of many islands on a long-term lease.

The China factor in President Muizzu’s foreign policy can be well ascertained through his choice of first state visit after assuming the presidency. At the time of recent controversy, he is on his first state visit to China from January 8-12, where he stated China as Maldives’ closest ally and affirmed to expand cooperation through the Belt and Road Initiative (BRI), unlike his predecessor, President Ibrahim Mohamed Solih, who backed closer India-Maldives relations.

The tourism industry of Maldives may suffer fallout from President Muizzu’s love for China and his ministers’ derogatory comments over promoting tourism in Lakshadweep.