India concerned over Maldives’ political instability, investment climate

The Indian government has expressed concern over continuing political instability in the Maldives, following the murder of Progressive Party of the Maldives (PPM) MP Afrasheem Ali this week.

In a statement on Thursday, India’s External Affairs Ministry said it had “consistently emphasised that peace and stability are necessary prerequisites to the firm implantation of democracy, as well as for the economic growth and prosperity of the people of Maldives.”

“We call upon all parties in Maldives to continue to work towards facilitating an early and commonly acceptable internal solution to the political impasse in the country. In this context, India urges the government of Maldives and all political parties to adhere strictly to democratic principles and the rule of law thus paving the way for the holding of free, fair and credible elections. Violence should find no place in democracies,” the Ministry stated.

India also called on the Maldivian government “to ensure a propitious climate for foreign investments, which have a direct bearing on the economic growth and development of Maldives.”

The latter remark comes after parties in the ruling coalition last month stepped up rhetoric calling for nationalisation of Ibrahim Nasir International Airport (INIA), currently being developed and managed by Indian firm GMR in the Maldives’ single largest foreign investment.

Following the controversial transfer of power on February 7, President Dr Mohamed Waheed Hassan’s government has swung between issuing reassurances within diplomatic circles that Indian investments in the country would be protected, while locally stepping up nationalisation rhetoric.

Last week, GMR’s Airports CFO Sidharth Kapur told Indian television channel CNBC that the dispute could affect the country’s investment climate.

“While we have invested both debt and equity into this project, these kind of problems naturally affect the investment climate of any region,” said Kapur.

Discussing the GMR case last week, the Maldives National Chamber of Commerce and Industries (MNCCI) assured Minivan News that investor confidence was not being harmed, though the body did describe the investment climate as “challenging”.

India meanwhile recently granted the Maldives a further US$25 million as part of a US$100 million standby credit facility agreed during last November’s official visit from Prime Minister Manmoham Singh.

The deal represents the third instalment of the credit facility, with the previous two instalments having amounted to US$50 million. The previous tranche of US$30 million was released following President Waheed’s first official visit to India in May.

The assistance comes at a time the Maldives is facing a crippling financial position.

Minister of Finance Abdulla Jihad told parliament’s Finance Committee that this year’s budget deficit is set to be double the original estimate of MVR 3 billion (US$195million).

Jihad told Parliament’s Finance Committee that state spending this year, MVR 9 billion (US$590 million), had outstripped earnings by 28 percent.


20 thoughts on “India concerned over Maldives’ political instability, investment climate”

  1. India should return to its own sovereign affairs and tend to their overflowing herds of cows and cow worshippers.

    After all, what is more 'extreme' and 'unstable' than worshipping cows and denying the oneness of God?

    People who live in glass houses should not throw stones.

  2. The politically charged Maldivian climate can be changed by reducing government’s ‘involvement in the economy and downsizing the government. People need alienation from the government and less dependent on government for livelihood. The culture of dependency on the government that was created by former dictator to sustain his dictatorship will not be easy to eliminate because it is more convenience for people like Maldivian who want make easy money through government either by corruption or through welfare and fat salary from government posts which provide money for doing nothing.
    Those who are against GMR are either ignorant or those who were reaping from the airport before and are misleading general people by giving wrong statistics of what government can make by nationalizing the airport.
    The Maldivian economy will rebound and political turmoil will be over once the people lose interest in the government. India should not assist Maldivian government financially to fuel the inflated big fat government. Probably India has sinister agenda by providing the loans so Maldivian will starve to death once the country is bankrupt. If India really wants the stable Maldives, India should not loan any money to the government but rather channel that money for investment.

  3. @Dhivehi Hangurama

    The "cow worshippers" essentially keep our sovereign solvent.

    Whatever you have purchased, food clothing, shelter for your innumerable wives and unfortunate children - 70% of the monies were earned from selling haram alcohol, and wilfully promoting fornication.

    "People who live in glass houses must not throw stone" - indeed.

  4. Agree with Abdul Ganee.

    India is right to be concerned about foreign investment climate given that their biggest investment in the country is under threat, and yet at the same time they continue to lend money to a government that to date hasn't even been able to produce a document of it's policies. They are living off the very taxes that MDP government introduced and they, as opposition then, criticised so much. Without any public expenditure reforms this government still continues to borrow from India, China and any country willing to lend them money, without a thought to escalating public debt.

    And if this Governmetn is so sure that MDP government gave GMR the airport under a corruption deal, well then prove it. Sure we would prefer that our airport be managed by a Maldivian company, but really what has the airport achieved all these years under our own management. Where is all the money that the airport earned? Nothing has been invested in it's development and within a few months GMR has done a lot more than what our Airport Company was able to do over years!!!! Even then, I honestly would want us to be in charge of our own airport, but really the Government has to realise that we can't afford to drive away foreign investment. And whether the Government likes it or not, the statement by India is really a subtle warning and a message to other foreign investors in Maldives. Still I have a feeling the government doesn't give a damn as long as they are in power and as long as there are countries willing to loan them money. Who cares about what happens to the common people eh?

  5. India was instrumental in installing a military regime in the Maldives. How was it that Yameen spent Feb 7 in the Indian Embassy!
    The regime have no mandate from the people and are driven by self interest.
    Now India wants to protect their commercial interests. GMR should be using its influence in India to change the behaviour of its own Govt.
    India is not in a position to lecture Maldives about democracy. They are to be blamed for the democratic unrest in this country.

  6. @dhivehihangyourself: these "cow worshippers" pay for the food you eat,the clothes you wear, the cell phone you use, the television programs you watch, the doctors who cure your illness and the teachers you teach you. Your rejection of them and their contributions that make your miserable island life tolerable makes you ungrateful or, as the "cow worshippers" would say "nemakharam".

  7. Never agree with anybody either in opinion or in attitude directly or indirectly. Never respect others and give no heed to what others tell. Oppose everything in the society. That is the real hallmak of a democracy. That is exactly what is taking place in the country right now but unfortunately in the wrong sense. No one respects judiciary. No one respects police or authorities. No one espects the goverment. No respect for laws. Political parties clash each other on the streets and signs of complete anarchy is evident. The country is highly dependent on India and other countries in a wide variety of manner. Therefore “People who live in glass houses must not throw stone” – indeed.

  8. India should be investing in stable democracies that share our ideals and values........and not in unstable islamist regimes like Maldives.
    I deeply resent my taxes being spent on soft loans and infrastructural projects in the Maldives.
    Why are your sunni brothers in Saudi Arabia, Bangladesh and Pakistan not investing in Maldives?..........why are we cow worshipping kafirs the only ones who are bailing you out financially time and time again?
    The sooner India places restrictions on the entry of Maldivians into India the better.

  9. The Indian prime Minister should read the comments from Abdul gani and Mariyam and follow their advice.\

    India turned its back,on the Leader who gave more to the Indians than any other leader in the Maldives.

    Not only did india turn its back, India(and I say this metaphorically) turned the knife in President Nasheed's back to protect the investments of Indians because current Indian Government thought that Gayoom and Co were coming back to power.

    India should have supported Nasheed when he was forced to resign.

    But why would the curtrent Indian government do that? The focus of the current Indian government is not on the poor the way Nasheed's government was, the focus is on the rich.

    Maldives would do well not to look to India for lessons on integrity. India is one of the most corrupt countries in the world. Corruption is a way of life in India, its in their culture.

    We have lost our faith in India. Atleast China sticks to their promises.

  10. @Peasant and the harlot from New Delhi, India

    It is the duty of the kafir to pay us tribute lest they provoke our wrath.

    Even the MalDeviant is superior to the cow worshipping Hindu. I shall not thank them for giving us what is our due. Perish the very thought!

  11. Indian ambassador to the Maldives got involved in the 7th Feb coup on behalf of Gayoom’s brother. So what do you expect, when your own countrymen do not protect your country’s interest.

  12. @Fathun
    I hope your love affair with China goes from strength to both deserve each dumb and dumber!!
    By the way, let me tell you that your intolerant strain of sunni islam will never be tolerated in China. China restricts the building of mosques and discourages its muslim Uighur people from attending religious services during the week.......China also controls travel to Saudi Arabai for Haj and Umrah and restricts travel to those in favour only.
    Oh dear!!..........I can see this hot romance hitting the skids very soon.......shame!!
    Also...........I wonder why your new friend China has not invested a single yuan in Maldives?..........why is it always my taxes invested by India?

  13. @Dhivehi Hangurma: In what way are you superior? is it in terms of appearance? Or attitude? or behaviour? or skill? or technology? or self suffciency? or economy? or facilities? or education? or health facilities? or transport?????? In all these you are not superiorrr.

    You may be superior only in terms of Fantasy...sorry to make you realize that

  14. A country that cannot pay salaries to its people if India does not give loan speaks what a joke.

    We Maldivians live on favours from India whether it is 1988 or 2012 and still point finger at them.

    Once , we guys lose funding from different countries no gasims or yameens will save.They will run

  15. It is sad that Indians were unaware of how dirty the Gayyoom brothers could be and on what a dirty ride they were taken for!

    India had it going good with President Nasheed who had the vision for growth, through PPP, and a mission to serve his people well!

    China said, it was not going to fish in troubled waters! But all the same, they are quickly signing long term insurance coverages with this government immaterial of its unlawfulness!

  16. From the Indian Foriegn Minister to 23rd Iththihad ... The Hindhus send a message to Dr. Imran Khan bin Sis-in-Law

  17. Dear Maldivians, Please always remember that India is not a country of only cow worshipers. In our country, we have 20% Muslims and many more good minds and they only praying for your country's progress.
    No religion is the problem for your country's situation. Please work for your country instead of blaming others, definitely Maldives will prosper in the future. Best Wishes...

  18. The Maldivian economy and politicalamity is a fast sinking dhaoni without paddle or life jacket. The debt tower is soaring sky high and seen from all corners of the planet. Goodluck chumbawumbas!!!!!

  19. India should concern there own population n growth. shame to India when they speak about giving loan to Maldives. How many Indians work here? yes we wont leave our Airport to GMR . get lost GMR

  20. Really now india govt has to take some action against maldives..and stop some help....


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