Development projects

The kind of economic situation in which Yameen had left Maldives was very dire. There were debts, there were sovereign guarantees, the private sector had taken loans from Chinese banks and the government had given a guarantee, which is not a norm. It was a much messed up situation so the economy needed resuscitation so we announced an economic package for them.

  1. Economic recovery package – India had offered Maldives an economic recovery package of $1.4 billion during Prime Minister Narendra Modi’s visit to the island nation in December 2018.
  2. Line of credit – Subsequently, India also announced line of credit and currency swap deals to Maldives.
  3. Infrastructure development projects – India is engaged in developing 45 infrastructure development projects in Maldives compared to nine by Saudi Arabia, nine by Kuwait, one by The Netherlands, and one each by Pakistan and China, the envoy said.
      • Greater Malé Connectivity Project in Maldives through a financial package consisting of a grant of $100 million and a new Line of Credit of $400 million.
      • This is going to be the largest civilian infrastructure project in Maldives, connecting Malé with three neighboring islands with the construction of a bridge-and-causeway link spanning 6.7 km.
      • India is engaged in building a road project in southern Maldives, water and sanitation project across the country and an airport extension project among others.
  1. Medical Support
      • Series of health and humanitarian assistance provided in 2020 that included donation of 5.5 tons of essential medicines, airlifting of 6.2 tons of medicines by the IAF from various India cities through Operation Sanjeevani,
      • Supply of 580 tons of food aid under Mission SAGAR by INS Kesari and deployment of Rapid Response Medical Team to assist.
      • Covid-19 support- Maldives was the first country to receive Covid-19 vaccines from India when India gifted 100,000 doses in January 2021.
  1. Connectivity
      • Creation of an Air Travel Bubble to facilitate movement of people from both sides for employment, tourism, medical emergencies etc. Maldives was the first neighboring country with which an air bubble was operationalized. This has boosted tourist inflow in Maldives and India became the largest tourists sending country for Maldives.
      • Commencement of direct cargo ferry service between India and Maldives to enhance sea connectivity and provide predictability in supplies and reduce logistics cost for India Maldives trade.