Maldivian President Mohamed Muizzu has agreed to allow India to set up a consulate in Addu, the southernmost atoll of the Maldives. This is a significant change from his coalition’s previous opposition, which had caused India to delay a proposal approved by the Union cabinet in May 2021.
The decision to establish Indian and Maldivian consulates in Addu City and Bengaluru, respectively, is part of a broader plan to strengthen economic and maritime cooperation between the two countries. This plan was developed during Muizzu’s state visit, focusing on enhancing people-to-people connections.
Muizzu’s visit to India is his second since taking office after winning the presidential elections. His initial campaign had been critical of India, but this visit and the resulting agreements represent a shift in the bilateral relationship.
India, having had a negative experience in the past, seems to be approaching the plan to establish the Addu consulate with caution this time. When asked about the plan during a media briefing, foreign secretary Vikram Misri referred to the vision document, which stated that both countries agreed to take steps to strengthen their historic bilateral ties. They also decided to work towards establishing a consulate of the Maldives in Bengaluru and a consulate of India in Addu City. This move is seen as a way to enhance trade and economic cooperation, as well as to promote greater people-to-people contacts.
Both leaders, as per Misri, discussed the importance of setting up the Addu consulate. “Since this requires a significant amount of work on the ground, the two teams will get in touch and move forward with the process,” he added.
In the summer of 2021, when the Union cabinet approved the proposal, Solih, faced with a #SaveAddu campaign, had stated on record that the Maldives had not made any decision on opening an Indian consulate in Addu. The #SaveAddu campaign reignited the “India Out” movement, which eventually gained momentum and led to the ousting of Solih two-and-a-half years later.
The #SaveAddu campaign raised questions about the necessity of an Indian consulate in Addu, as there are not many Indians living on the atoll or visiting it as tourists. This raised concerns about a potential security agenda due to India’s increased surveillance of the Indian Ocean.
Another significant decision made on Monday was the currency swap agreement, allowing the Maldives to access a $400-million window and a separate ₹30-billion window to strengthen the atoll nation’s foreign exchange reserves. “This move instills confidence in the Maldives’ existing foreign exchange position and enables them to engage in deals or discussions requiring enhanced foreign exchange that they can draw on. The aim is to demonstrate confidence and assurance in the Maldives’ current foreign exchange position,” Misri stated.
The foreign secretary stated that India will repair and refit the Maldivian Coast Guard ship Huravee, which was given to the Maldives a few years ago. The work will be done in India at no cost. The foreign secretary also mentioned that there are no plans for Indian military personnel to return to the Maldives to operate the aviation platforms provided by India. This decision was made to the satisfaction of both countries. When Muizzu became the leader, he insisted that Indian military personnel should leave the Maldives. After negotiations, India replaced them with technical personnel.