Published on 08 Jan 2025
India and Maldives share ethnic, linguistic , cultural, religious, and commercial links steeped in antiquity and enjoy close, cordial, and multi-dimensional relations. India was among the first to recognize Maldives after its independence in 1965 and to establish diplomatic relations with the country.
Importance of Maldives to India
✔ Geographic
● Proximity to India: Maldives is located just 70 nautical miles away from Minicoy, the southernmost island of Lakshadweep, making it geographically close to India.
● Commercial Sea-Lanes: Maldives serves as a strategic point within the Indian Ocean's commercial sea lanes, facilitating the transit of over 97% of India's international trade volume and 75% by value.
✔ Geopolitical
● Naval Presence Potential: Maldives could host a third nation's naval presence, enhancing its strategic value, notably given China's increased naval activities in the Indian Ocean.
Areas of Cooperation
✔ Political
● Neighborhood First Policy: Maldives holds a pivotal place in India's "Neighborhood First" policy. The Government of Maldives reciprocates with its "India First" policy.
● Multilateral Engagement: Both nations believe in multilateralism.
o Example: Both are members of SAARC and IORA.
o India played a role in Maldives' membership in IORA.
o Maldives supports India's bid for permanent UNSC membership and voted in favor of India's non-permanent seat for 2020-21.
● SAGAR Policy: Maldives is an essential partner of India's "Security and Growth for All in the Region" (SAGAR) policy.
✔ Economic
● Trade Relations: India is Maldives 2nd largest trading partner.
o Example: Exports from India include various engineering and industrial products, medicines, cement, rice, spices, fruits, vegetables, poultry produce, etc.
● Economic lifeline for the Maldives: Indian projects provide a major boost to connectivity between the four islands accounting for about half of the Maldivian population
o Example: Greater Malé Connectivity Project is funded by a grant of USD 100 million and a Line of Credit (LOC) of USD 400 million from India.
● Financial Assistance: India offered a $1.4 billion assistance package to the Maldives in 2018, in contrast to China's commercial loans termed as "debt-trap diplomacy.
o Example: India established fish-processing plants in the Maldives, aiding in local development and fostering collaboration
✔ Social
● Developmental Cooperation: India has invested in developmental projects to enhance local capacities and decentralization efforts, meeting community needs.
o Example: High Impact Community Development Projects
● Health: India's healthcare facilities attract Maldivians due to ease of medical visas, quality healthcare, and affordable costs.
o Example: India provided essential medicines, food aid, and vaccines under the 'Vaccine Maitri Initiative.'
● Education and Skills: India supports education through scholarships, training, and capacity-building programs.
● Humanitarian Aid: India was the first to provide aid following the 2004 tsunami in Maldives.
o Example: Operation Neer: during the drinking water crisis in Malé
● Cultural Cooperation: Cooperation in enhancing cultural ties.
o Example: Indian experts restored three historical mosques in Maldives. India is building a cricket stadium in Hulhumale and training young Maldivians in cricket.
● Tourism: India and Maldives have visa-free travel, with India being the largest source of tourist arrivals in Maldives in 2023. (Maldivian Tourism Ministry data)
● Expatriate Community: Indian nationals make up the second-largest expatriate community in Maldives, with significant contributions to the healthcare and education sectors. (MEA)
✔ Security
● Maritime Security: Both nations cooperate in maritime security through patrolling, aerial surveillance, information exchange, and capacity building
o Example: India installed a coastal surveillance radar system in Maldives.
● Defence Training: India meets around 70% of the Maldivian National Defence Force's training requirements.
● Counterterrorism: Enhanced cooperation in combating terrorism, including Islamist fundamentalism, is crucial.
o Example: Exercise Ekuverin
Challenges in India- Maldives Relations
✔ Political
● Political instability: Instability in Maldives' political landscape can adversely affect India's diplomatic, security, and developmental interests.
o Example: Bilateral relations between India and the Maldives saw a decline during Abdullah Yameen's tenure from 2013 to 2018
● China factor: India is wary of China's expanding strategic footprint in the region, and the Maldives has become a significant component of China's "String of Pearls" strategy in South Asia.
o Example: The Maldives signed a 50-year lease agreement with a Chinese firm for an uninhabited island near Malé, demonstrating China's growing influence in the country.
● Big Brother Attitude: India is seen as exerting excessive influence over Maldivian domestic and foreign policies.
o Example: During the political crisis in the Maldives in 2018, India was vocal about the restoration of democracy and the rule of law
● Trust Deficit: The oscillation in Maldivian political leadership between pro-India and pro-China stances has created an environment of uncertainty and mistrust.
o Example: During the presidencies of Abdulla Yameen (who leaned towards China) and Ibrahim Solih (who restored closer ties with India)
✔ Security
● Radicalization: The rise in radicalization among Maldivian youth as they align with terrorist organizations like the Islamic State is a matter of concern for India.
o Example: In 2007, a group of Maldivians was arrested for planning a terror attack on an Indian naval ship, underscoring the risk of extremist elements in the country.
Way Forward
✔ Economic Partnership: India should prioritize a trade agreement to boost economic ties with the Maldives.
✔ Development Projects: Timely completion of projects and active promotion are crucial for enhancing India's soft power.
✔ Diaspora Engagement: Leveraging the Indian diaspora can strengthen people-to-people connections.
✔ Cultural Diplomacy: Cultural exchanges can deepen ties and foster mutual understanding.
✔ Defense and Security Collaboration: Joint efforts in defense and counter-terrorism are essential for regional stability.
✔ Indo-Pacific Security: India should play a proactive role in securing the Indo-Pacific region.
✔ Managing the 'India Out' Campaign: Addressing campaign concerns and clarifying India's intentions is crucial to maintaining a favorable relationship.
India and the Maldives should continue to deepen economic, security, and cultural ties while addressing concerns for a mutually beneficial and enduring partnership in the Indo-Pacific region.
World Affairs
Maldives
SAGAR
BRI
'India Out' Campaign
Ekuverin
General Studies Paper 2
India and Its Neighbors