From capturing power on an ‘India Out’ plank two years ago to describing India as the closest and most trusted partner now, Maldivian President Mohamed Muizzu’s geopolitical pendulum has swung sharply to replace partisanship with pragmatism. Having realised that his Chinese fixation had not quite contributed to the economic easing he was hoping for, Muizzu slowly warmed up to India, inviting Prime Minister Narendra Modi for the country’s 60th Independence Day celebrations on July 26.
For his part, Modi signalled the reset in ties with a ₹4,850-crore line of credit for Maldives and a new framework for expanding cooperation in trade, defence, infrastructure and digital connectivity. The financial aid is in Indian rupees, the first such rupee-denominated line of credit to the Maldives, and is expected to be spent on several infrastructure projects. The two sides also signed an amended agreement on reducing Maldives’ annual debt repayment obligations by as much as 40 percent. The relief came at a time when Maldives is grappling with a dollar squeeze. Muizzu thanked India for being the first responder in crises and extending ‘pivotal’ help in dealing with economic challenges and liquidity crunch. The nations also exchanged drafts for a free trade agreement that they expect to conclude quickly. Maldives already has an FTA with China.
India’s first responder approach during times of humanitarian distress is a spearhead of its diplomatic outreach in its neighbourhood and beyond. As recently as last week, it offered to airlift students singed by an aircraft crash into a Dhaka school for advanced treatment in India. Over the years, India has also contributed resources to prevent or mitigate regional and international crises as a first responder.
Pragmatically choosing not to put all his eggs in one basket, Modi met the entire gamut of political leadership in Maldives, including opposition leaders. For, the Trumpian world order is anything but predictable. Global leaders are struggling to deal with the Tughlaqian tariffs that are expected to kick in on August 1; the bending of facts to suit one man’s whims, which, among other things, re-hyphenated India with Pakistan; and the callous insensitivity to the Gaza genocide. Being nimble-footed in diplomacy is the only way to deal with the resultant churn.