Debt-ridden Maldives given Rs 832 cr, Parl told

India has come to the rescue of the Maldives as the latter faces financial troubles. New Delhi provided the highest aid of Rs 832.83 crores to President Mohammed Muizzu-led country in the last fiscal — the highest aid provided to any foreign country during the period.

As per the figures tabled by the government in Parliament, during FY2023-24, India provided an aid of Rs 832.83 crore to the Muizzu-led island nation, who repaired ties with the third-largest economy in Asia as his own country grappled under huge economic duress.

The Maldivian economy faced debt crunch as it failed to maintain momentum in the wake of the Covid-19 pandemic. While GDP growth reached 13.9 per cent in 2022, it slowed to four per cent in 2023, with tourists spending at rates below pre-pandemic levels, according to the World Bank.

Prior to his India visit in October 2024, Muizzu — who is considered to be a “pro-China” leader — had softened his stance, saying he had never opposed India. He had added that New Delhi knew the financial strain that his nation was under and was willing to help.

Muizzu’s softening stance towards India contrasted with his push for the withdrawal of Indian troops from the island country an year ago when he took office. He had even promised new major projects to be backed by China. His campaign had thrust the Maldives to the center of a rivalry between the two powers, which have been vying for influence over the Indian Ocean nation for its strategic location.

Softer stance yields fruit for Muizzu

Prior to his Oct 2024 visit to India, Maldives President Mohammed Muizzu had softened his stance towards India. This had come after he pushed for the withdrawal of Indian troops from the island nation an year ago when he took office.