India Maldives Relations UPSC

India and Maldives relations

India Maldives Economic relations 

• India and Maldives signed a trade agreement in 1981, now bilateral trade stands at US$ 288.99 Million (2018) heavily in favour of India. India is Maldives’ 4th largest trade partner. 
• State Bank of India has been playing a vital role in the economic development of the Maldives since 1974 by providing loan assistance for promotion of island resorts, export of marine products and business enterprises. 

India Maldives Defence Cooperation 

• Since Operation Cactus (1988), in which Indian Troops prevented a coup in Maldives, defence and security has been a major area of cooperation between both. 
• India provides the largest number of training opportunities for Maldivian National Defence Force (MNDF), meeting around 70% of their defence training requirements. 
• Indian Army and MDNF have been conducting Exercise Ekuverin (‘Friends’ in the Maldivian language) since 2009. 

India Maldives Development Assistance 

• Major completed development assistance by India include Indira Gandhi Memorial Hospital, Maldives Institute of Technical Education, Construction of National Police Academy etc. 
• Grants for projects under High Impact Community Development Projects (HICDPs): These include projects such as ambulances, Convention Centre, drug rehabilitation centre, police station upgradation etc. 
• India has provided large-scale assistance to Maldives in the aftermath of the 2004 Indian Ocean tsunami and during the 2014 Male water crisis under Operation Neer. 

India Maldives People to people relations 

• Indians are the second largest expatriate community in the Maldives. About 25% of Doctors and Teachers in Maldives are Indian nationals. 
• India offers several scholarships to Maldivian students such as: Indian Council for Cultural Relations scholarships, SAARC Chair Fellowship etc. 
• The India Cultural Center (ICC) in Male was inaugurated in 2011, which conducts courses in yoga, classical music and dance. Also, Hindi commercial films, TV serials and music are immensely popular in Maldives. 
• In 2019, Indian PM was conferred with the Maldives’ highest honour —Rule of Nishan Izzuddeen. 

Challenges in India and Maldives Relations 

• The Maldives’ reliance on China to develop more than US$2.5 billion in infrastructure projects and the resulting accumulation of foreign debt— 40 per cent of the country’s GDP, is a concern for India. These raises concerns about Chinese debt-trap diplomacy. 

• Political instability in Maldives as democracy is yet to take a firm footing is a cause of concern as it will have impact on India’s relations. E.g. in 2012 Maldives announced termination of a USD 511 million project with the Indian infrastructure company GMR Infrastructure Limited. 

• Its political instability has challenged overall security of the Indian Ocean by increasing radicalisation — over 200 Maldivians reportedly joined the Islamic State —and by the granting of non-transparent permissions for foreign investment.