The Last Decade India and Maldives

The Last Decade: India and Maldives

India and Maldives relations have seen many ups and downs caused by changing political situations in both countries and some external factors. During Maldivian Presidential elections in 2013 Abdulla Yameen defeated Mohamed Nasheed to become the President. During Yameen’s term, Maldives relations with India deteriorated while its closeness with China increased, which is highlighted by:

• Cancellation of GMR project, 2012: Maldives annulled the $500 million contract with GMR Group to develop a modern International Airport near Male, which was later given to a Chinese company.

• Cancellation of Indian PM’s trip, 2015: Due to turbulent political situation in Maldives, Indian Prime Minister cancelled his trip to Maldives.

• Island lease to China, 2016: Maldives signed a new law permitting developers to own islands on lease for development and subsequently, a Chinese company took control of FeydhooFinolhu, an uninhabited island close to Male and its international airport, on a development lease for 50 years.

• India’s concern about emergency, 2018: India’s ties with Maldives nose-dived after it criticised the Abdulla Yameen government for imposing a 45-day emergency earlier in 2018.

• Returns Indian helicopters, 2018: Maldives asked India to take back the two helicopters given to Maldives along with the training personnel who were there on the invitation of Maldivian Government.

• Denial of work permits, 2018: Maldives denied work permits to nearly 2000 Indians working there, while no action was taken against thousands of Bangladeshis who were over- staying beyond the work permit periods.

During all these negative developments in Maldives, India responded with patience and composure, trying to revive relations diplomatically. However, the election of Solih in 2018, as new President of Maldives has caused a thaw in India Maldives relations which can be gauged by:

• Despite opposition from Indian Ocean Rim Association, India convinced IORA Committee for Senior Officials in favour of Male, following which Maldives was inducted as the newest member of IORA recently.

• Maldives has asked India for a Dornier aircraft and the MEA has responded positively to its request.

• Maldives’ new government has decided to pull out of the free trade agreement (FTA) with China, realizing the onesided nature of the FTA.

Highlights of Visit of Solih to India in December 2018

India and Maldives signed the following agreements: • Agreement on the     Facilitation of Visa Arrangements

MoU on Cultural Cooperation and for Establishing Mutual Cooperation to Improve the Ecosystem for Agribusiness.

Joint Declaration of Intent on Cooperation in the field of ICT and Electronics.

India and Maldives agreed to work together to create institutional linkages and to establish a framework of cooperation in the following areas:

Health cooperation issues particularly cancer treatment.

Mutual Legal Assistance on Criminal Matters.

Investment promotion.

Human Resource Development.

Tourism and climate change.

Private sector involvement in development of housing and infrastructure.

Water and sewerage systems in the outlying islands of Maldives.

Combating terrorism and piracy in the Indian Ocean.

Reforming the UN General Assembly and the Security Council.

India announced financial assistance of US $ 1.4 billion in the form of budgetary support, currency swap and concessional lines of credit for socio-economic development of Maldives.

Both agreed to strengthen cooperation to enhance maritime security in the IOR through coordinated patrolling and aerial surveillance, exchange of information and capacity building.

Maldives expressed its support for India’s candidature for permanent membership of UNSC and India’s candidature for a non-permanent seat for the year 2020-21.

India on its part welcomed Maldives’ re-entry into Commonwealth.

Prime Minister Narendra Modi visit to Maldives in 2019

India, Maldives Sign Six Key Agreements:

Prime Minister Narendra Modi visited Maldives after taking office in his second term.

It was marked by the signing of six key agreements between the two sides will facilitate cooperation in capacity building, cyber security, housing, disaster management and infrastructure development in the Maldives.

Defence & Trade deals-

The Memorandums of Understanding (MoU) covered areas such as hydrography, health, passenger and cargo services by sea, capacity building in customs and civil service training.

A technical agreement on sharing ‘White Shipping Information’ between the Indian Navy and the Maldives National Defence Force was also signed, enabling exchange of prior information on the movement of commercial, non-military vessels.

The two countries have agreed to start a ferry service between Kochi and the Maldives.

Prime Minister Narendra Modi visit to Maldives in 2025

On the historic occasion of the Maldives' 60th anniversary of independence and the development of diplomatic ties between the two countries, Prime Minister Modi traveled to the country.

Six MOUs in the areas of fisheries and aquaculture, meteorology, digital public infrastructure, UPI, Indian pharmacopoeia, and concessional lines of credit were exchanged between the two leaders.

The new Line of Credit offers Rupees 4850 crores [ approx USD 550 million] in support of infrastructure development and other activities in Maldives.

Both leaders also took stock of the progress in the implementation of the India-Maldives Joint Vision for a ‘Comprehensive Economic and Maritime Security

Partnership’, adopted during the State Visit of the President of Maldives to India in October 2024