India and the Maldives have been historically close. But thanks to the Maldives’ strategic location in the Indian Ocean, India and China compete for influence. Over the last decade, China has been investing in infrastructure projects. However, the investments made for upgrades have had costs for the Maldives. By 2018, Chinese loans had saddled Male with nearly $1.5 billion in debt. However, India authorised $1.4 billion to help the Maldives with loan paybacks. The Maldives was also the first country to receive vaccines from New Delhi – a shipment of 100,000 doses of Covishield vaccine. Yet, today, India finds itself on the outside.
Despite this setback, India must step up its engagement with the Maldives. New Delhi must actively support deepening democracy in the island nation and engage in institution- and capacity-building. India must be seen as a partner with a deep understanding of the island’s culture and history. To build on this shared bond and commitment to democracy, India must put people, particularly its diaspora, at the heart of the effort. In creating such strong grassroots links, India can dispel concerns about ensuring closer ties between the two nations.