Maldivian President Visits India Amid Crisis in Tourist Paradise

Maldivian President Mohamed Muizzu is making a strategic visit to India this week, seeking a potential financial bailout as the island nation faces a looming economic crisis that threatens its reputation as a tourist paradise.
Economic Crisis and Financial Bailout
Since coming to power late last year, after running on an “India Out” campaign, Muizzu promised to reduce India’s influence over the Maldives. However, the country’s severe economic situation—with foreign reserves standing at only $440 million, enough for just one and a half months of imports—has forced him to turn to India.
Credit rating agency Moody’s recently downgraded the Maldives’ rating, citing a high risk of default. As a result, a financial package from India, possibly including a $400 million currency swap deal, could be crucial to stabilizing the country’s foreign reserves.
Diplomatic Relations and Economic Dependence
Although Muizzu visited China and Turkey before coming to India, experts emphasize that the Maldives is highly dependent on its larger neighbor. The visit signals that Muizzu’s administration recognizes the importance of maintaining strong ties with India, which provides essential food, infrastructure, and healthcare support to the Maldives.
Challenges in India-Maldives Relations
Relations between the two countries have been strained in recent months, with controversial incidents, such as Maldivian ministers making offensive remarks about Indian Prime Minister Narendra Modi, and Muizzu allowing a Chinese research vessel to visit the archipelago.
However, the Maldivian government suspended the ministers involved and expressed interest in improving bilateral ties. Muizzu’s visit to India is seen as a key step toward repairing the relationship and securing the financial support needed to avoid economic collapse.
With a significant drop in Indian tourist numbers—leading to an estimated $150 million loss—and no other country stepping up to offer help, Muizzu’s visit to India is critical for ensuring the Maldives’ economic stability and future.