India proves power of its policy through selfless action in The Maldives

They say ‘blood is thicker than water’ to suggest that immediate family bonds will always take precedence over other loyalties.

But in South Asia - neighbors are ‘thicker’. Ask anyone born in South Asia just to understand this idea. Families and communities grow up as one. Festivals, occasions such as birthdays and weddings, and even fun and recreation are all done together. But, it’s not always peaceful. Fights break out, disagreements happen, sometimes there are protracted battles between neighbors.

But there is always a deep pragmatic and heart felt understanding that when one is in trouble the other must support. Part of this is based on South Asian cultures (what they teach) and how we are taught. It can also be attributed to a self-preservation instinct that says- ‘If you don’t support your neighbor when they are in trouble, no one will come to support you.

There is a cultural understanding that neighbors being in fine fettle is important for one’s own welfare and vice versa.

Beyond the sociological theories and observations, while family is indeed important, in South Asia, neighbors and neighborhood, I daresay are more important.

And it’s interesting to study the geopolitical manifestation of this implication. Especially in the Indian subcontinent. It is fair to say that the sub-continent is one big neighborhood with many shared cultural values beliefs and close family ties. And the reality of geographical proximity- either of shared land border or a very close separation by the Indian Ocean or the Bay of Bengal.

So, when Sri Lanka had its crisis, its neighbor India came out in support to lend a (much needed) hand. And from there Sri Lanka has moved to a degree of stability and normalcy.

But, what happened in The Maldives tested the South Asian neighborhood bond theory fully and completely.

Mohammed Muizzu took charge in September 2023, as the Maldivian President ostensibly on the back of an ‘India out’ campaign. It was widely reported that the ‘China’ friendly party had defeated the ‘India’ friendly one and come to power. Sections both within The Maldives and outside presented this as the failure of India’s foreign policy and testament to a ‘win’ for China. The neighbor (India) had been replaced with its own rival (China).

So exactly one year later, it’s very interesting to see President Muizzu and wife Sajeda being accorded a very warm and cordial welcome in New Delhi. And to see the generosity and seeming sincerity of the Indian economic package on offer.

So, what exactly caused this crisis in The Maldives to happen? And why are they seeking India’s help? Similar to Sri Lanka in 2022, The Maldives too is facing a forex crisis with inadequate reserves to pay out its loans and buy essential imports needed to run the economy. Reports suggest that the Maldivian reserves are down to just 440 million USD, just enough for 6 weeks of imports. And in this situation, default was highly likely.

The moot question then is, why is the pro-China government of President Muizzu is unable to secure this help from China? How come just like Sri Lanka, The Maldives too needs its neighbor to be the ‘first responder’ in times of immediate peril?

It does seem that when the chips are really down, China is not the best friend to turn to!

And yes, India yet again has engaged The Maldives with speed and positive intent. And played first responder to the hilt. During President Muizzu’s visit, India has granted a 400 million USD currency swap and a deal to do another 350 million USD worth swap to allow companies to do business in local currency.

With this significant economic engagement, India’s ‘neighborhood first’ policy has shown itself to be true and time tested. Especially in this case with The Maldives- a country with a leader who has seemingly rejected Indian participation in its future. By keeping aside any ‘hurt’ that may have been justifiably felt by the collective Indian consciousness and acting purely on the immediate need of a neighbor in distress, India has demonstrated maturity, pragmatism and a certain ‘selflessness’. All of which sends out a clear message to its neighborhood.

India’s neighborhood first policy means what it says. It prioritizes its neighbors welfare and puts it first. Neighbors can rely on India’s support as ‘first responder’ at times of dire need.

Lots of ‘Indian Ocean’ water has flowed under the ‘Sinamale bridge’ since the year old ‘India out’ campaign, but India holds no grudges and will stand by neighbors through thick and thin.

India and rest of South Asia have deep rooted civilizational links - ones that can’t be easily broken or diminished.

(Santosh Menon is an Indian businessman living in Sri Lanka. He is a keen observer of politics and economics in the country. And he can be reached on santoshmenon3@gmail.com)