India–Maldives Relations: Strengthening Strategic and Developmental Ties
Syllabus – International Relations (UPSC GS II)
Source: HT
Context of the Visit
During PM Modi’s 2025 official visit to the Maldives, 8 significant bilateral agreements were signed in areas such as digital payments, debt relief, infrastructure, fisheries, and a ₹4,850 crore Line of Credit, marking a new phase in bilateral cooperation.
Foundations of Bilateral Relations
India and Maldives share strong ethnic, cultural, linguistic, and trade linkages, shaped by geographical proximity. Maldives is central to India’s “Neighbourhood First” and SAGAR (Security and Growth for All in the Region) policies in the Indian Ocean.
Major Agreements Signed
- Debt Relief: Annual repayment burden reduced by 40%.
- Line of Credit: ₹4,850 crore for Maldives’ priority infrastructure.
- Fintech Integration: UPI and RuPay launched for seamless digital payments.
- Fisheries: Boosted cooperation in marine livelihoods.
- Affordable Housing: Handover of 3,300 Indian-financed housing units.
- Defence Support: India gifted 72 vehicles and defence equipment.
- Climate Cooperation: Joint focus on renewable energy and disaster resilience.
- Trade Talks: Agreed to expedite discussions on FTA and Bilateral Investment Treaty.
Strategic Significance of the Visit
- Countered the earlier “India Out” campaign.
- Reaffirmed India’s role as a trusted first responder and development partner.
- Reinforced India’s position in the Indian Ocean Region (IOR).
- Deepened people-to-people engagement in housing, education, and healthcare.
Historical Milestones in Bilateral Ties
- India recognized Maldives’ independence in 1965.
- Operation Cactus (1988): Prevented a coup in Maldives.
- Assistance during 2004 tsunami, 2014 water crisis, and the COVID-19 pandemic.
Key Areas of Cooperation
1. Defence and Maritime Security
- Joint exercises: Dosti, Ekuverin, Ekatha.
- Projects: Coastal Radar System, UTF Harbour, MNDF Training Centre.
- Over 1,500 Maldivian officers trained; regular MEDEVAC and HADR assistance provided.
2. Development and Infrastructure
- Major projects: Greater Malé Connectivity, Hanimaadhoo Airport, IGMH Hospital.
- 47 High Impact Community Development Projects (HICDPs) implemented.
3. Trade and Economic Engagement
- India: Maldives’ largest trading partner (2023); trade worth $548 million.
- Key exports: food, medicine, construction material.
- Key imports: seafood, scrap metal.
- UPI/RuPay rollout to boost fintech connectivity.
4. Tourism and Cultural Exchange
- India: Top tourist source from 2021–23.
- Open Skies Agreement signed to improve air connectivity.
5. Education and Capacity Building
- Scholarships (ICCR), training (ITEC), teacher exchanges.
- Supported institutions: Police College, ICT Centres, Technical Institutes.
Challenges in the Bilateral Relationship
- “India Out” Narrative: Politicised concerns over Indian military presence.
- Chinese Influence: Growing Chinese footprint through BRI-linked debt.
- Sovereignty Concerns: Defence cooperation viewed by some as interference.
- Political Instability: Leadership changes impact policy continuity.
- Delayed Implementation: Administrative and political hurdles in project execution.
Way Forward: Strengthening the Partnership
- Ensure timely delivery of infrastructure projects.
- Institutionalise dialogues on economic and security cooperation.
- Expand collaboration in blue economy and climate resilience.
- Promote youth and civil society engagement to foster goodwill.
- Align Maldives more firmly with India’s Indo-Pacific vision.
Conclusion
India–Maldives relations have grown into a multi-dimensional strategic partnership. PM Modi’s 2025 visit reaffirmed India’s long-term commitment to the Maldives’ development and regional stability. The focus must now shift to sustained diplomacy, people-centric initiatives, and timely project implementation to deepen mutual trust and cooperation.
