India-Maldives Relations
Kartavya Desk Staff
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:
• 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.
• 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:
• Major projects: Greater Malé Connectivity, Hanimaadhoo Airport, MIFCO cold storage, IGMH hospital. 47 High Impact Community Development Projects (HICDPs) implemented.
• Major projects: Greater Malé Connectivity, Hanimaadhoo Airport, MIFCO cold storage, IGMH hospital.
• 47 High Impact Community Development Projects (HICDPs) implemented.
• Trade & Investment:
• 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.
• 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:
• India was top tourist source in 2021–23, with over 2 lakh arrivals annually. Open skies agreement signed to promote connectivity.
• India was top tourist source in 2021–23, with over 2 lakh arrivals annually.
• Open skies agreement signed to promote connectivity.
• Education & HRD:
• ICCR scholarships, ITEC training, teacher exchange. New institutions: Police College, Technical Institutes, Malé ICT projects.
• 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.