Based on various relevant archival data, some of which are empirical in nature, this paper gives details on the ethnic relationship between Fiji Indians and indigenous Fijians. It also touches on the relationship between India and Fiji which dates way back to the 1870s when the Indian nationals were brought into Fiji under the indenture system to work in the sugarcane plantations. Fiji is one of the most developed Pacific island economies. While it is a coup-ridden military -ruled island nation, India has pledged and shown much support to it unlike a few other countries. Some countries have continuously called for elections and democracy, labelling Fiji's current regime as undemocratic. This paper concludes that to some extent the happenings in Fiji have been exaggerated. It also states that the ongoing ethnic divide between Fiji Indians and indigenous Fijians will never really completely fade, however, efforts can be made to reduce it. While much has been written, the ethnic divide continues. In this respect, this paper makes specific recommendations. This is the key contribution of this paper.

Fiji, a coup-ridden, yet one of the most developed of Pacific island economies is an island nation located in the heart of the Pacific Ocean, southwest of Honolulu, and midway of the equator and New Zealand. The recent infamous 2006 coup has dimmed the attractiveness of the business climate. The preceding coups of May and September 1987, and May 2000 had already affected the confidence of the investor, shattered tourism image of the country, led to trade bans and to a decline in international funding. The GDP dropped by 6.4% in 1987 and 1.7% in 2000 (ADB, 2008).

Fiji, given its pendulum regime syndrome (going to and fro in terms of political stability) has caused political indigestion amongst most of its donors and neighboring countries. The December 5, 2006 coup was all in the name of democracy, claimed as undemocratic by many. At present, the country is operated under the military rule of the Prime Minister (PM)—Commodore Josaia Voreqe (Frank) Bainimarama, post the 2006 bloodless coup. Following the coup-de-tat, Fiji suffered a year of negative economic contraction of 3.9% given the declines in tourism, sugar, construction and gold mining earnings (ADB, 2008). A number of funding agencies suspended most of the new aid proposals, but many existing projects have continued (ADB, 2008).

Based on the relevant archival data, some of which are empirical in nature, this paper gives details on the ethnic relationship between Fiji Indians and indigenous Fijians. It also touches on the relationship between India and Fiji, which dates way back to the 1870s when the Indian nationals were brought into Fiji under the indenture system to work on sugarcane plantations. While Fiji is a coup-ridden island nation ruled by the military, India has pledged and shown much support to it in its own ways unlike a few other countries. Some countries have continuously called for elections and democracy, labelling Fiji's current regime as undemocratic.

History and Culture Journal, Indianizing, Pacific Island Economies, International Funding, Gross Domestic Product, Indigenous Fijians, Sugarcane Plantations, Sugarcane Industry, Indian Community, Infrastructure Development, Water Resource Management, Coconut Industry Development, Sugar Industry Development, Indo-Fijian Community.