India's finance minister, Nirmala Sitharaman, announced on Thursday that the government will invest heavily in tourism in Lakshadweep, a union territory located in the Indian Ocean. The announcement is seen as a response to recent provocations from the Maldives, a neighboring island nation.
In December 2023, Indian Prime Minister Narendra Modi visited Lakshadweep, promoting the islands as a tourist destination. The Maldives, which is heavily reliant on tourism, responded by accusing India of trying to poach its tourists. The dispute led to a boycott of Maldives by Indian tourists.
The Indian government's budget announcement includes plans to improve infrastructure in Lakshadweep, including airports, roads, and hotels. The government also plans to promote Lakshadweep as a sustainable tourism destination.
Analysts say the budget announcement is a clear signal that India is committed to developing Lakshadweep as a tourist destination. They also say the announcement is a way for India to counter the Maldives' growing ties with China.