Nasheed: If not for India, Maldives would have defaulted on its debt

Former Maldivian President Mohamed Nasheed has said that at a time when the Maldives is facing increasing financial troubles and significant debts, India's generous contributions have been assisting the country in managing its debts and sustaining economic stability.

Indian Prime Minister Narendra Modi is making a state visit to the Maldives from July 25 to 26, at the behest of incumbent Maldivian President Dr Mohamed Muizzu. Modi will also be attending Maldives' 60th Independence Day celebrations during the visit.

In an interview with Asian News International (ANI), Nasheed said India's Neighborhood First policy has provided important development opportunities for Maldives, and that it “has produced tangible outcomes”. 

ANI shared excerpts from the interview on Wednesday.

#WATCH | Male, Maldives | Ahead of PM Modi's 2-day visit to the country, Former President of Maldives Mohamed Nasheed says, "The Neighbourhood First policy of India provides vital opportunities for us to align with India’s dynamic economic trajectory. This regional approach has… pic.twitter.com/frFNhhymMb

— ANI (@ANI) July 23, 2025

Nasheed further said that Maldives has always received India's assistance even in the most difficult times. “With our mounting financial difficulties and substantial debt obligations, India’s timely support helped us avoid default and maintain economic stability”, he said.

The Maldivian economy would have defaulted if not for India's prompt assistance, he said.

“In short, if not for India, we would have gone default", said Nasheed. 

In his ANI interview, Nasheed maintained that Maldives has always given priority to an 'India First' foreign policy. Noting that past government administrations had "occasionally swung between a strong pro-China and a strong pro-India alignment", placing the country in a difficult position. Nasheed then affirmed that the country’s foreign policy will stabilize as its democracy "matured".

He also added that Modi’s upcoming visit confirms the importance of India’s relationship with Maldives.

The Muizzu administration came to power through an 'India Out' campaign. Relations between the two countries deteriorated to an unprecedented level after three deputy ministers of this government made disparaging remarks regarding India and Indian Prime Minister Modi following a social media post promoting India’s Lakshadweep as an alternative tourist destination to the Maldives in January last year.

Speaking to reporters after concluding a state visit to China the same month, President Muizzu said that Maldives wasn’t any country’s backyard and that the country cannot be bullied just because it is small – remarks that were widely believed to be directed at India.

Despite the earlier turmoil, officials from both Male’ and Delhi repeatedly expressed keenness to repair relations, and engaged in several high-level visits, including two by President Muizzu himself.

Modi said on Wednesday that it was a great honor to attend the official celebrations of Maldives' 60th Independence Day.