President Mohammed Muizzu has thanked India for helping in strengthening the economy of Maldives. Addressing the nation on the occasion of Maldives’ Independence Day, he said that both India and China have helped a lot in repaying the debt of Maldives.
Muizzu expressed hope that India and Maldives will build strong relations and sign a free trade agreement soon. Regarding the shortage of US dollars in Maldives, Muizzoo said that his government is talking about currency swap agreements with India and China.
India has provided assistance of Rs 400 crore to Maldives under the ‘Neighbors First Policy’. Maldives expressed gratitude for this and hoped that India would help in making the repayment of the loan easier.
Maldives is facing economic crisis, IMF had warned
According to a Reuters report, a few months ago the IMF had warned Maldives that if it did not make changes in its economic policy, it may have to face problems regarding debt. Earlier in a meeting on Friday, Muizzu had said that China has given relief from loan repayment for up to five years.
There has been tension between the two countries since the coming of the government of Mohammed Muizzu, who ran the ‘India Out’ campaign in Maldives in November last year. This is hurting the tourism sector of Maldives. After the objectionable remarks made on Prime Minister Modi in January 2024, the number of Indian tourists visiting Maldives has reduced significantly.
To remove the tension between the two countries, Maldives Tourism Minister Ibrahim Faisal is visiting India. They will hold road shows in big cities like New Delhi, Mumbai and Bengaluru to woo Indian tourists. During this period, people will also be appealed to come to Maldives in maximum numbers.
The number of Indians visiting Maldives continues to decline
Ibrahim Faisal is coming to India at a time when the number of Indian tourists visiting Maldives has decreased rapidly. There has been a decline of 42 percent in the number of Indian tourists visiting Maldives between January and April this year as compared to last year. In the first 4 months of 2023, the maximum number of Indian tourists went to China. Tourists from China stood third in this matter.
According to the data of Maldives Tourism Department, 73,785 Indians had reached Maldives between January and April in 2023. This year this figure was 42,638. Compared to last year, Maldives lost 31,147 tourists in just 4 months.
According to the data, only 15,003 Indians had reached Maldives in January 2024. In January 2023, this figure was 18,612. At the same time, 11,522 Indian tourists went to Maldives in February 2024. A year ago in February 2023, this figure was 19,497.
