Minicoy island in Lakshadweep, the archipelago belonging to India that some see as a rival to the Maldives. Alamy
Minicoy island in Lakshadweep, the archipelago belonging to India that some see as a rival to the Maldives. Alamy
Minicoy island in Lakshadweep, the archipelago belonging to India that some see as a rival to the Maldives. Alamy
Minicoy island in Lakshadweep, the archipelago belonging to India that some see as a rival to the Maldives. Alamy

Maldives vs Lakshadweep: What is the controversy?


Taniya Dutta
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A row has erupted online over two rival sets of beautiful islands after India's Prime Minister Narendra Modi shared a series of photos from the beach.

His visit to the Lakshadweep islands, which belong to India, prompted some social media users to suggest it was a more attractive destination than the Maldives, an island nation whose economy hinges on tourism and is visited by many Indians.

Some supporters of Mr Modi took it further and called for a boycott of the Maldives, prompting an angry reaction from several Maldivian politicians, three of whom were suspended by their government over the row, and even calls for the suspension of business ties between the two countries.

The controversy appears to have benefited Lakshadweep – an official Indian government account shared a post on Tuesday highlighting that Mr Modi's visit had led to "a significant surge in online searches about the islands".

"This worldwide search interest is currently at its highest in the last 20 years, indicating a renewed fascination with its natural beauty and cultural richness,” read a message on the MyGovIndia X account.

Here's everything you need to know.

Where is Lakshadweep?

Lakshadweep is an archipelago of 36 islands in the emerald waters of the Arabian Sea, about 400km off the south-western coastal state of Kerala.

Only 10 of the islands are inhabited. The islands are a union territory of India and are ruled directly by India's Modi-run central government.

The islands are known for their exotic white sandy beaches.

According to the MyGovIndia post, Lakshadweep is characterised by "natural beauty and cultural richness".

Kalpeni island in Lakshadweep off India's south-western coast. Alamy
Kalpeni island in Lakshadweep off India's south-western coast. Alamy

What is the controversy?

The controversy erupted last week after many Indian social media users asked tourists to visit Lakshadweep instead of the Maldives, following Mr Modi’s recent visit to the Indian territory.

The Prime Minister, who was on an official visit to the islands in the first week of January, also took part in adventure activities on the pristine beaches where he was seen snorkelling.

Mr Modi urged “those who wish to embrace the adventurer in them” to add Lakshadweep to their travel destinations.

Neither him nor his government had made any reference to the Maldives but his supporters prompted the comparison with the island nation – a popular yet expensive tourist destination among Indians.

More than 200,000 Indians visited the Maldives last year, the Maldivian government said.

Fallout

Supporters of Mr Modi called for Indians to shun the Maldives and instead visit Lakshadweep.

‘BoycottMaldives’ began trending on social media, prompting fierce reactions from Maldivians.

At least three Maldivian politicians were among those to react, calling out Mr Modi and criticising Lakshadweep.

Officials say more than 200,000 Indian tourists visited the Maldives last year. Unsplash
Officials say more than 200,000 Indian tourists visited the Maldives last year. Unsplash

Mariyam Shiuna, the Deputy Minister of Youth Empowerment, Information and Arts, allegedly called the Indian Prime Minister "a clown” and a “diver in a life jacket” in posts on X that have since been deleted.

Maaiz Mahmood, another Maldivian politician, also shared a picture, believed to be from Bora Bora islands in French Polynesia – which are almost 15,000km away and not even in the same ocean – with the caption “Sunset in Maldives. You won’t see this in Lakshadweep.” He also tagged the Indian Prime Minister.

As the fierce reactions escalated into a diplomatic row, the Maldivian government swiftly sprang into action and suspended the three politicians.

“These opinions are personal and do not represent the views of the government of Maldives,” the Foreign Ministry said. "Moreover, the relevant authorities of the government will not hesitate to take action against those who make such derogatory remarks.

In India, travel agency EaseMyTrip announced the suspension of all flights to the Maldives and launched discount offers to Lakshadweep.

Several Indian actors, including megastar Amitabha Bachchan, and some top cricketers also made posts praising the beauty of Lakshadweep.

Some have even tried to escalate the row to the level of state ties.

The Confederation of All India Traders carried out a protest in the Indian capital Delhi on Tuesday, in which the group called for the suspension of business ties with the Maldives over the dispute.

The Indian government has not commented on the remarks of the Maldivian politicians or responded to calls to suspend business ties.

While you're here
if you go

The flights

Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.

The hotel

Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.

The tour

Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: January 29, 2024, 6:24 AM