INDIA-MALDIVES
Current Relations
- Economic Relations
- Bilateral Trade: US$ 290.27 million
- Trade Relations:
- Trade Agreement signed in 1981
- India is the 4th largest trading partner
- Recently, India launched the first-ever cargo ferry with the Maldives from Cochin port
- Development Assistance and Initiatives:
- Banking: Presence of Indian banks like SBI & EXIM in the Maldives to provide loan assistance in developmental projects
- Infrastructure Development: India provided assistance for Indira Gandhi Memorial Hospital, Polytechnic College, Institute of Hospital and tourism
- Economic Package: 2018—Economic Package of $1.4 billion—to help the Maldives come out of debt
- Connectivity: India announced $500 Million connectivity funding to Male in 2020 to build sea bridges.
- Ferry Service: To begin between Kochi & Maldives
- RuPay Card: Introduced in Male
- Strategic and Security-Based Relations
- Operation Cactus 1988: India prevented a coup in Male
- Assistance: India provides 70% of the defense training for the Maldives.
- Joint Military Exercise: Since 2009, Exercise Ekuverin.
- Military Training: Indian officers train the Maldives National Defence Force.
- Disaster Management:
- Assistance during the 2004 Tsunami.
- 2014 Male Water Crisis: India sent bottled water.
- COVID Aid:
- Operation Sanjeevan: During COVID-19, India supplied essential medicines.
- Sent 3 consignments of vaccines to the Maldives.
- SAGAR: The Maldives is significant in the SAGAR initiative (Security and Growth for All in the Region) for the Indian Ocean.
- US-Maldives Defence Agreement: Enables US-India interests to counter Chinese influence in the Maldives.
- Cultural/People-to-People Relations
- Tourism: In 2019, India was the 2nd largest source of tourist arrivals in the Maldives. In 2021, India was the largest market with a 23% share.
- Indian Expats: 22,000 Indians in the Maldives, including 25% of doctors and teachers.
- Ease of Travel: 2018 Bilateral agreement on visa arrangement for workers and skilled labor.
- Multilateral Relations/Engagements
- SAARC, SASEC, and The Commonwealth.
Importance/Benefits of India-Maldives Relations
- Historical
- India was the 1st country to recognize the Maldives in 1965 after independence.
- Maritime Treaty: In 1976, a treaty established the maritime boundary, clarifying Minicoy on the Indian side.
- Operation Cactus: In 1988, India intervened to prevent a coup attempt in the Maldives by Tamil secessionists from Sri Lanka, reinforcing India’s role in the Maldives’ security.
- Economic
- Trade Agreement: In 1981, both nations signed a comprehensive trade agreement, being members of SAARC and signatories to the South Asia Free Trade Agreement.
- Economic Aid: India supports infrastructure, health, telecom, and labor resources.
- Water Aid: In 2014, India provided immediate water relief during the Male Water Crisis.
- COVID Aid: In 2020, India provided a $150 million currency swap, medicines, and essential food supplies to help during the COVID-19 pandemic.
Strategic Importance and Initiatives
- SAGAR in the Indian Ocean: Maldives holds a strategic location in the Indian Ocean, which can bolster India’s SAGAR (Security and Growth for All in the Region) policy.
- Countering China’s ‘String of Pearls’: Good relations with the Maldives assist India in countering Chinese expansion in the Indian Ocean Region (IOR).
- Center of Chinese Shipping Lines: Since China started sending naval ships to Indian Ocean routes about a decade ago, the Maldives has become central to these shipping lines extending to the Gulf of Aden.
- UTF Harbour Agreement: In February 2021, India and the Maldives signed an agreement to develop the UTF harbour, aimed at building maritime capacity.
- Defence Line of Credit: This facilitates capability-building in the Maldives’ maritime domain.
- Colombo Conclave: The Maldives is a part of India-driven multi-lateral initiatives like the Colombo Conclave, alongside Sri Lanka, Mauritius, and potentially Bangladesh and Seychelles.
- Convergence with India-US: In 2020, the Maldives signed a defense pact with the US, agreeing to open a US embassy, marking a first for the nation.
- Other Benefits: Includes Maldives’ support for India’s UNSC bid, market access for Indian products, and water economy harnessing.
- Soft Power: Strong cultural linkages between both nations enhance India’s influence.
- Dominance in IOR: The Maldives’ strategic location offers India dominance over the Indian Ocean Region.
Concerns/Issues
- Chinese Strategic Presence: Since 2018, Chinese warships have been active off the eastern fringes of the Indian Ocean, heightening regional competition.
- Domestic Politics: Relations with the Maldives faced challenges under certain regimes like Yameen’s, who favored ties with China and Saudi Arabia.
- Increasing Religious Fundamentalism: Could penetrate Indian territory and raise security issues.
- Chinese Debt-Trap Diplomacy: Chinese loans have left the Maldives in significant debt, reportedly 70% of its external debt.
- Growing Anti-India Sentiments: Previously, certain political factions were perceived as pro-China.
- Unstable Politics: The Maldives often experiences phases of democratic backsliding.
- Financial Crime and Money Laundering: This emerging issue poses new challenges.
- India Out Campaign: Opposition factions with pro-China leanings aim to reduce India’s influence.
- Protests During Indian Minister’s Visit: A protest was planned a day before External Affairs Minister S. Jaishankar’s arrival in the Maldives, but it was halted by authorities. This demonstrates domestic tensions and sensitivities about India’s involvement in Maldivian affairs.
- Opposition Leader Yameen’s Release: Yameen, who is close to China, was released from house arrest in December 2021 after the Maldivian Supreme Court overturned his conviction. His release has fueled anti-India rallies, suggesting a rise in anti-India sentiment linked to pro-China political factions.
- Upcoming Elections: With the next presidential and parliamentary elections in 2024, Yameen is allegedly using anti-India rhetoric to build his support base by portraying the ruling party as being overly aligned with India.
- Policy Implications for India: The text concludes that for India to maintain strong ties with the Maldives, it must maintain consistent focus on the relationship. Neglect in the past led the Maldives to seek closer ties with China. India is advised to consider the Maldives as a strategic policy priority to counterbalance China’s influence in the region.
This highlights the geopolitical significance of the Maldives for India and the need for proactive engagement to prevent Chinese encroachment in the Indian Ocean.