India offers Maldives half a billion reasons to distance itself from China

The US$500 million pledge is part of New Delhi’s push to regain influence in the archipelago nation of 340,000 people

The Maldives borrowed billions of dollars from Beijing and hired Chinese firms for infrastructure projects under its previous president

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The new investment announcement takes the total financial outlay pledged by India to the Maldives to more than US$2 billion. Photo: Shutterstock

Published: 11:25pm, 13 Aug 2020Updated: 12:08am, 14 Aug 2020

India on Thursday pledged US$500 million to build bridges and causeways in the Maldives, as New Delhi seeks to counter growing Chinese influence in the Indian Ocean.

The Maldives borrowed billions of dollars from Beijing and hired Chinese firms for infrastructure projects under previous President Abdulla Yameen.

This stoked concerns in India and the West that China was saddling countries in Asia and beyond with unsustainable debts while expanding its sphere of influence.

Under the new Maldives government, India has sought to regain influence in the archipelago nation of 340,000 people and 1,192 islands located on major East-West shipping lanes.

Abdulla Yameen, former president of the Maldives, pictured with Chinese President Xi Jinping in 2017. Photo: AFP

The new investment announced takes India’s total pledged outlay to over US$2 billion since President Ibrahim Mohamed Solih came to power, India’s foreign ministry said.

Maldives Foreign Minister Abdulla Shahid said the new money was part of a financial package to build bridges and causeways linking the capital Male to three neighbouring islets.