Maldives is facing unexpected turmoil due to recent actions that strained its relations with India, resulting in the declaration of bankruptcy by the island nation. The dispute, worsened by President Mohammed Muizzu’s ‘India Out’ campaign, has led to a critical financial situation prompting Maldives to seek a bailout loan from the International Monetary Fund (IMF), exacerbating its economic woes.
President Muizzu’s ‘India Out’ campaign, aiming to remove Indian soldiers from Maldives and replace them with qualified technical staff from India by May 10, marked a significant escalation in tensions between the two countries. The situation worsened when three Maldivian ministers made controversial remarks about Indian Prime Minister Narendra Modi during his visit to Lakshadweep.
Despite the subsequent expulsion of the three ministers, President Muizzu refrained from condemning their remarks, further straining India-Maldives relations. This deliberate provocation led to reports of Maldives declaring bankruptcy, prompting the government to turn to the IMF for financial assistance.
Under President Muizzu’s leadership, the once-positive relations between India and Maldives have dramatically shifted. His anti-India stance, evident in efforts to expel the Indian army and controversial ministerial comments, has severely strained diplomatic ties.
The fallout from these actions has caused widespread dissent among Indians, resulting in many canceling trips to Maldives, significantly impacting the nation’s tourism industry. India, previously a major source of tourists for Maldives, has seen a sharp decline in visitor numbers, slipping from the top spot to fifth place last year.
The combination of financial implications and strained diplomatic relations presents multifaceted challenges for Maldives, affecting both its economic stability and diplomatic standing.
