Tourism, Trust, And A New Bridge: Inside Modi’s Maldives Reset Explained

Last Updated:July 25, 2025, 12:32 IST

PM Modi’s July 2025 Maldives visit marks a reset- earned, negotiated, and now sealed. Welcomed as Guest of Honour just 18 months after major fallout.Ask ChatGPT

Until recently, the relationship between India and the Maldives was sailing rough waters. From cozy neighbours in the Indian Ocean to diplomatic distance caused by political shifts, the two countries found themselves caught in a cold current.

The flashpoint? A cocktail of anti-India rhetoric during Maldivian elections, a viral tourism boycott, and growing Chinese influence in the archipelago. But now, with Prime Minister Narendra Modi’s high-profile visit to Malé as Guest of Honour for the Maldives’ 60th Independence Day, the tide seems to be turning and fast.

How Did It All Sour So Quickly?

It started with the 2023 Maldivian presidential elections. Mohamed Muizzu, a pro-China candidate, campaigned aggressively on an “India Out” platform. His win led to the demand that India withdraw its military presence (helicopter teams used for humanitarian aid and coastal rescue) a key factor in India’s regional soft power.

Then came January 2024. PM Modi posted pictures promoting Lakshadweep as a travel alternative to the Maldives. In response, three Maldivian deputy ministers posted derogatory, racially charged tweets mocking Modi and India calling Indian tourists “ill-mannered,” “cheap,” and making comments laced with Islamophobic innuendos.

The reaction from Indian netizens was swift and cutting: a nationwide tourism boycott of the Maldives erupted overnight, trending across social platforms with hashtags like #BoycottMaldives, #VisitLakshadweep, and #MaldivesInsultsModi.

Prominent Indian Voices That Amplified the Backlash

The outrage wasn’t just social media noise. Several influential voices from Bollywood stars to political heavyweights and business leaders publicly condemned the Maldivian officials and either cancelled travel or called for broader disengagement.

Here are some of the most high-profile names:

• Akshay Kumar (Actor): “Maldives mocking our PM is unacceptable. Time to explore Indian destinations like Lakshadweep instead.”
• Anupam Kher (Actor): “If we don’t respect our own, who will? Let’s choose Indian shores.”
• Kangana Ranaut (Actor): “India is not just a market to be used and mocked. Enough. #BoycottMaldives”
• Amitabh Kant (Former NITI Aayog CEO): “Time to discover the unexplored and pristine beauty of Lakshadweep. Let’s build local.”
• Narayan Rane (Union Minister): Called for cancellation of India-Maldives diplomatic cooperation and encouraged tourism in Indian islands.
• Faye D’Souza (Journalist): Shared factual data on how heavily Maldives relies on Indian tourism, subtly reinforcing the boycott narrative.
• Raveena Tandon, Salman Yusuf Khan, and others: Also posted pictures or reels encouraging followers to “visit Indian islands instead.”

Tour operators, hotel chains, and influencers quickly followed suit, altering campaigns to push Lakshadweep, Andamans, and even Goa and Kerala as premium beach alternatives. Indian tourism boards quietly capitalized on the moment, further fanning the redirection of traffic.

The Real Costs of Diplomatic Drama

In 2023 2,09,193 Indian tourists visited the Maldives. India was the No 1 source market, contributing around 11% of total tourist arrivals for the island country

By 2024, those numbers dropped to 1,30,805, pushing India down to the 6th spot among source countries which is a 38% year-on-year decline.

So how much money are we talking about?

• Average tourist spends in the Maldives are high, typically around $2,000 per visitor, especially from high-end Indian travellers.
• In 2023, Indian visitors likely brought in $400–450 million in foreign exchange.
• In 2024, that figure was slashed to around $250 million or less meaning a potential revenue loss of $150–200 million directly attributable to the boycott.

For a tourism-reliant economy, that’s more than a PR crisis. That’s an economic punch to the gut.

PM’s 2025 Visit: The Great Reset Begins

PM Modi’s July 25–26, 2025 state visit is more than ceremonial. It’s a signal to the region and the world: India still holds diplomatic gravity in the Indian Ocean.

He was welcomed as Guest of Honour for the Maldives’ 60th Independence Day, a remarkable reversal from being publicly criticized just 18 months earlier.

Behind the scenes, India is working on fresh Lines of Credit, economic grants, and development cooperation. Infrastructural work like the India-funded Thilamalé sea bridge, Hanimadhoo Airport expansion, and water projects across 32 islands are already changing the Maldives’ physical and political landscape.

More importantly, Modi’s visit include discussions on:

• Maritime security, including counter-narcotics cooperation (especially given links to Pakistan-sponsored drug routes).
• Replacement of Indian military with civilian technical teams, a face-saving win for both sides.
• Tourism revival, with new connectivity options and promotional plans to bring Indian tourists back.

Can Tourism Rebuild What Politics Broke?

Maldivian ex-President Mohamed Nasheed recently said: “PM Modi’s visit will undo the damage done to bilateral ties and restore Indian arrivals to our shores.” It’s not just diplomacy talking, tourism is the lifeline for many Maldivians. Resentment towards the boycott has been quietly building at the grassroots level too.

India, meanwhile, has ramped up development work in Lakshadweep, but hasn’t abandoned the Maldives. With better connectivity through new flights and sea links, and a calmer political environment, Indian travellers are slowly returning.

New airport upgrades and visa fast-tracking systems between the two nations are expected to further revive the honeymoon economy, quite literally.

And Maldives has set itself a big goal: attract 3,00,000 Indian tourists in 2025, more than double the 2024 count. If achieved, that would mean a return to $600 million+ revenue from Indian visitors alone.

Strategic Depth: Why the Maldives Still Matters to India

This isn’t just about tourism or optics. India and Maldives share more than sea lanes and coral reefs, they share security interests.

The Maldives sits at a critical maritime chokepoint. China’s investments in ports, airstrips, and radar infrastructure in the Indian Ocean have alarmed Indian defence planners for over a decade.

The “String of Pearls” theory, Beijing’s plan to encircle India with bases gains strength with every Maldivian lean toward China.

India’s answer has been Neighbourhood First, win hearts, build bridges (literal and political), and counterbalance Chinese economic influence with tangible, local-benefiting infrastructure. Modi’s visit reinforces this approach.

Beyond Selfies and Speeches

This reset wasn’t inevitable, it was earned, negotiated, and now symbolically sealed.

India gets strategic continuity. Maldives gets financial breathing room. And the Indian traveller? They get clarity, comfort, and maybe a direct flight to turquoise waters with less baggage.

The Maldives lost over $150–200 million in Indian tourist revenue in 2024. This visit is about reclaiming it, and the relationship it represents.

From “India Out” to “India First Guest” in 18 months the arc of Indian diplomacy may bend slowly, but it bends back with interest.

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First Published:

July 25, 2025, 12:32 IST