India- Maldives relations

As close and friendly neighbours, India and Maldives share ethnic, linguistic, cultural, religious and commercial links steeped in antiquity and enjoy cordial and multi-dimensional relations. India was among the first to recognise Maldives after its independence in 1965 and to establish diplomatic relations with the country. India established its mission at Malé in 1972.

Importance of Maldives to India:

People To People Contact
Economic and Commercial Relations:

India and Maldives signed a trade agreement in 1981, which provides for export of essential commodities.
Growing from modest beginnings, India-Maldives bilateral trade now stands at Rs.700 crores.
Indian exports to the Maldives include agriculture and poultry produce, sugar, fruits, vegetables, spices, rice, wheat flour (Atta), textiles, drugs and medicines, a variety of engineering and industrial products, sand and aggregate, cement for building etc.
Indian imports primarily scrap metals from the Maldives. Under the bilateral agreement, India provides essential food items like rice, wheat flour, sugar, dal, onion, potato and eggs and construction material such as sand and stone aggregates to Maldives on favourable terms

3. Indian Business in Maldives

Cultural Relations: The India Cultural Center (ICC), established in Male in July 2011, conducts regular courses in yoga, classical music and dance. ICC programmes have become immensely popular among Maldivians of all ages.
Indian Community
Capacity Building and Training

Maldives Vs India

Radicalisation
Political Instability
China’s strategic footprint in India’s neighbourhood has increased. The Maldives has emerged as an important ‘pearl’ in China’s “String of Pearls” construct in South Asia.
The India-Maldives relationship suffered a setback when Maldives entered into a Free-Trade Agreement (FTA) with China in 2017.

Significance :

Geographical: Maldives’ proximity to the west coast of India.
History: India and Maldives share ethnic, linguistic, cultural, religious and commercial links
Geo-political: Maldives is an important aspect of India’s ‘Neighbourhood First’ policy.
Trade and Tourism: India is Maldives’ 4th largest trade partner after UAE, China and Singapore. In 2018, India was the 5th largest source of tourist arrivals in Maldives.
Defence: Its potential to allow a third nation’s naval presence in the area.
Diaspora: Indians are the second largest expatriate community in Maldives with an approximate strength of around 22,000.

Disaster Management: The Government of India has provided large-scale assistance to Maldives in the aftermath of the 2004 Indian Ocean tsunami and during the 2014 Male water crisis.

Initiatives proposed:

Air connectivity “bubble” for travel
direct ferry service
Submarine cable for telecom connectivity
assistance for the Greater Male Connectivity project (GMCP)

At present, India-assisted projects in the region include water and sewerage projects on 34 islands, reclamation project for the Addl island, a port on Gulhifalhu, airport redevelopment at Hanimadhoo, and a hospital and a cricket stadium in Hulhumale.