GS 2 – International Relation
Context
- A recent official visit by the Indian PM marked a new phase in relations with eight key bilateral agreements signed.
- Rooted in ethnic, linguistic, cultural, and commercial ties.
- Strategic location in the Indian Ocean makes Maldives crucial to:
- India’s “Neighbourhood First” policy.
- India’s SAGAR (Security and Growth for All in the Region) initiative.
Recent Outcomes and Key Agreements
- Debt Relief: India reduced Maldives’ annual repayment burden by 40%.
- ₹4,850 Crore Line of Credit: For infrastructure projects aligned with Maldivian development.
- UPI and RuPay Integration: To promote digital connectivity and local currency trade.
- Fisheries Cooperation: Boosts marine economy and livelihoods.
- 3,300 Housing Units: Indian-funded housing handed over in Hulhumalé.
- Security Assistance: India gifted 72 vehicles and defense equipment.
- Climate & Disaster Partnership: Joint efforts for green energy and resilience.
- FTA and Investment Talks: Agreement to begin talks on Bilateral Investment Treaty and FTA.
Significance of the Visit
- Countered “India Out” Narrative: Symbolic reversal of earlier anti-India sentiments.
- Reaffirmed India’s Role: As a reliable first responder and development partner.
- Secured Strategic Interests: Bolstered India’s influence in the Indian Ocean Region (IOR).
- Strengthened People-to-People Ties: Through collaboration in housing, education, and health.
Key Areas of Cooperation
Defence & Security
Joint Exercises: Ekuverin, Ekatha, Dosti.
Key Projects:
- MNDF Training Centre
- Coastal Radar System
- Ekatha Harbour
- UTF Harbour
Training & Support:
- 1,500+ MNDF officers trained by India.
- Support in MEDEVAC and HADR operations.
Development Assistance
Major Projects:
- Greater Malé Connectivity Project
- Hanimaadhoo Airport
- MIFCO Cold Storage
- IGMH Hospital
Community Development:
47 High Impact Community Development Projects (HICDPs)
Trade & Investment
- Top Trading Partner (2023): Bilateral trade worth $548 million.
- Key Indian Exports: Food, medicine, construction materials.
- Key Maldivian Imports: Scrap metal, seafood.
- Fintech Connectivity: UPI & RuPay to boost transactions and digital trade.
Tourism & Culture
- Top Tourist Source: India (2021–2023) with 200,000+ visitors annually.
- Connectivity: Open skies agreement signed to enhance travel links.
Education & HRD
Scholarships & Training:
- ICCR scholarships
- ITEC training
- Teacher exchange programs
New Institutions:
- Police College
- Technical Institutes
- Male ICT projects
Challenges & Differences
“India Out” Sentiment:
- Spearheaded by President Muizzu’s earlier stance.
- Viewed Indian military presence as a threat to sovereignty.
Chinese Economic Leverage:
- Rising Maldives debt under China’s BRI raises India’s strategic concerns.
Sovereignty Sensitivities:
- Opposition often critiques Indian defense infrastructure projects.
Political Instability in Maldives:
- Frequent leadership changes affect foreign policy continuity.
Delayed Project Execution:
- Administrative and political bottlenecks delay Indian projects.
Way Forward
- Timely Project Delivery: Crucial for credibility and goodwill.
- Institutionalized Dialogues: For managing geopolitical shifts and strategic clarity.
- Enhanced Collaboration: Focus on blue economy and climate resilience.
- People-to-People Exchanges: Promote youth, educational, and civil society engagement.
- Indo-Pacific Alignment: Leverage Maldives’ position for Indo-Pacific stability.