As the struggle for influence intensifies among global powers in the Indo-Pacific region, both India and China have been actively courting the Maldives, an Indian Ocean nation with historical ties to India, which, under the leadership of Muizzu, has recently shifted its allegiance towards China.
Despite strained relations due to President Muizzu's stance demanding the withdrawal of nearly 80 Indian troops from his country, India has significantly increased its development assistance to the Maldives, with projects gaining momentum over the past year.
According to a source familiar with the matter, New Delhi has allocated nearly 7.71 billion rupees (equivalent to 93 million US Dollars), almost double its initially budgeted amount of 4 billion rupees, for projects in the Maldives during the current fiscal year ending in March.
The development initiatives include a substantial 500-million US dollar investment in road and bridge construction around Male, the capital, as well as two airport projects valued at nearly 130 million US Dollars each, focusing on remote islands in the archipelago.
Despite the shift in the Maldives' diplomatic stance, India remains committed to its development cooperation with Male, with the pace of project implementation even accelerating in recent times, fueled by increased funding allocations from New Delhi.
President Muizzu's recent visit to Beijing underscores the Maldives' growing engagement with China, although he has yet to make a similar trip to India. Notably, both India and the Maldives have agreed to replace the Indian troops with alternative arrangements by May, with India emphasizing its role in providing humanitarian aid and facilitating medical evacuations in the region.
Indian budget documents reveal a significant surge in financial allocations for Maldivian projects, with expenditure rising from 1.83 billion rupees in the fiscal year 2022-23 to 7.71 billion rupees in the current fiscal year, making it the second-highest recipient of Indian assistance after neighboring Bhutan.
However, the Maldives' increasing engagement with Beijing has raised concerns in New Delhi, particularly evidenced by its decision to allow a Chinese research vessel to dock at its port, despite apprehensions about China's strategic interests in the region.
Highlighting India's concerns about the presence of external powers, particularly China, in the Indian Ocean region, an official emphasized the need to safeguard against potential security threats posed by such actors.
