Syllabus: International Relations
Source: HT
Context: During Prime Minister of India official visit to the Maldives, 8 key bilateral agreements were signed, covering digital payments (UPI), debt relief, fisheries, infrastructure, and a ₹4,850 crore Line of Credit, marking a renewed phase in India-Maldives relations.
About India-Maldives relations:
India and Maldives share deep-rooted ethnic, linguistic, cultural, and commercial ties, reinforced by proximity in the Indian Ocean. Maldives is a critical part of India’s “Neighbourhood First” and SAGAR (Security and Growth for All in the Region) policy frameworks.
Recent Outcomes:
8 Key Agreements Signed:
- Debt Relief: India agreed to reduce Maldives’ annual repayment burden by 40%.
- ₹4,850 Cr Line of Credit: For infrastructure aligned with Maldives’ development goals.
- UPI and RuPay Integration: To expand digital connectivity and promote local currency trade.
- Fisheries Cooperation: Strengthened ties in livelihood and marine economy.
- 3,300 Housing Units: Handover of Indian-financed social housing in Hulhumalé.
- Security Assistance: India gifted 72 vehicles and defence equipment.
- Climate & Disaster Partnership: Joint cooperation on resilience and green energy.
- FTA and Investment Talks: Agreed to advance discussions on Bilateral Investment Treaty and Free Trade Agreement.
Significance of the Visit:
- Symbolically reversed the “India Out” rhetoric under Muizzu’s earlier stance.
- Reaffirmed India’s role as first responder and development partner.
- Anchored India’s strategic interests in the Indian Ocean Region (IOR).
- Strengthened people-to-people ties through housing, education, and health cooperation.
Historical Background:
- India was first to recognize Maldives’ independence in 1965.
- In 1988, India averted a coup in Maldives under Operation Cactus.
- Assistance during 2004 Tsunami, 2014 Malé water crisis, and COVID-19 pandemic elevated India’s stature as a reliable partner.
Key Areas of Cooperation:
- Defence & Security:
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- Joint exercises: Ekuverin, Ekatha, Dosti.
- Projects: MNDF Training Centre, Coastal Radar System, Ekatha Harbour, UTF Harbour.
- India has trained over 1,500 MNDF officers and provided extensive MEDEVAC and HADR support.
- Development Assistance:
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- Major projects: Greater Malé Connectivity, Hanimaadhoo Airport, MIFCO cold storage, IGMH hospital.
- 47 High Impact Community Development Projects (HICDPs) implemented.
- Trade & Investment:
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- India is Maldives’ largest trading partner (2023) and bilateral trade at $548 million (2023).
- Key exports: food, medicine, construction materials.
- Key imports: scrap metal, seafood.
- UPI and RuPay integration to boost fintech connectivity.
- Tourism & Culture:
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- India was top tourist source in 2021–23, with over 2 lakh arrivals annually.
- Open skies agreement signed to promote connectivity.
- Education & HRD:
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- ICCR scholarships, ITEC training, teacher exchange.
- New institutions: Police College, Technical Institutes, Malé ICT projects.
Challenges & Differences:
- “India Out” Sentiment: The nationalist campaign led by President Muizzu earlier strained bilateral trust, portraying Indian military presence as a threat to sovereignty.
- Chinese Economic Leverage: Maldives’ rising debt to China through BRI-linked projects creates strategic concerns for India over long-term influence in the region.
- Sovereignty Sensitivities: Indian-backed defence infrastructure and troop presence are occasionally viewed by Maldivian opposition as interference in internal affairs.
- Political Instability in Maldives: Frequent leadership changes and coalition politics often shift the Maldives’ foreign policy priorities, affecting bilateral consistency.
- Delayed Project Execution: Administrative hurdles and political resistance in Maldives have slowed Indian-funded infrastructure projects, affecting credibility and local sentiment.
Way Forward:
- Ensure project delivery timelines to build long-term credibility.
- Institutionalise economic and security dialogues to handle geopolitical shifts.
- Deepen blue economy and climate resilience collaboration.
- Promote youth, education, and civil society exchanges to sustain trust.
- Align Maldives more closely with Indo-Pacific stability frameworks.
Conclusion:
India–Maldives ties have evolved into a robust developmental and strategic partnership. PM Modi’s 2025 visit reinforced India’s commitment to the Maldives’ growth and regional stability. Sustained diplomacy, trust-building, and people-centric initiatives will define the next chapter.
