Former Maldives President Stresses India's Crucial Role Amidst Economic Challenges

Former Maldives President Mohamed Nasheed highlighted the vital importance of maintaining robust relations with India for the nation's prosperity and security, amid growing economic challenges due to China's lending and trade policies. Nasheed emphasized India's role at the Raisina Dialogues 2025, amid the contentious China-Maldives Free Trade Agreement.

Former Maldives President Mohamed Nasheed underscored the critical significance of fostering strong ties with India, amid the nation's escalating economic hurdles exacerbated by China's financial antics. Nasheed, participating in the Raisina Dialogues 2025 in India, spoke to ANI, emphasizing that the Maldives cannot flourish without steady relations with its regional ally.

The ex-president's remarks come as the Maldives battles a deepening debt crisis attributed to China's lending and trade mechanisms. Nasheed pointed out the seesaw shift in Maldivian governance which has caused fluctuating relations with India. Encouragement was drawn from recent reconciliations between the nations, showcasing a renewed diplomatic vigor.

Amidst this backdrop, the China-Maldives Free Trade Agreement (FTA) has stirred additional complications, deepening the island nation's economic quandary rather than alleviating it. As per Dimitra Staikou, a human rights advocate, the FTA's implementation in January 2025 tilted trade heavily towards China, risking the economic sovereignty of the Maldives.

The stark trade imbalance, where Maldives exports account for less than 3% in bilateral trade against China's overwhelming 97% import dominance, proves disadvantageous, further impairing governmental revenue streams. The tourism sector terms further highlight this, with financial benefits routed back to Chinese enterprises at the expense of the Maldivian economy.

Conversely, bilateral relations with India have historically been favorable for Maldives, providing financial backing, infrastructure development, and security alliance. India recognized Maldives' independence as early as 1966, and as the island nation navigates its economic complexities, India continues to be a pivotal contributor, underscoring Nasheed's remarks on sustaining India-Maldives diplomatic synergy for ongoing security and prosperity.

(With inputs from agencies.)