Context:

Just months after strained relations, President Dr. Mohamed Muizzu's state visit from October 6 to 10, 2024, signifies a shift in Maldives-India ties. Muizzu, who assumed office in November 2023, campaigned on the ‘India Out’ movement and initially called for the withdrawal of Indian troops from the Maldives, reflecting a perceived shift towards China.

Historically, India has been a crucial ally and aid provider to the Maldives. Muizzu's visit aims to reinforce bilateral relations, despite earlier tensions exacerbated by derogatory comments from Maldivian officials regarding Indian leadership and policies. Following his election, Muizzu's diplomatic overtures included visits to China and Turkey, perceived as snubs to India.

• Muizzu’s recent approach indicates a willingness to collaborate with India. The country is currently facing a looming economic crisis, with a debt default risk as foreign reserves dwindle.

Key highlights of the Meeting:

Strengthening Bilateral Relations: The meeting reaffirmed India’s commitment to the Maldives as a cornerstone of its ‘Neighbourhood First’ policy and Vision SAGAR (Security and Growth for All in the Region).

·        The Maldives expressed gratitude for India's timely emergency financial assistance, including the rollover of USD 100 million in T-bills, which provided critical support during urgent economic challenges.

·        The role of India as a 'First Responder' in crises was acknowledged, citing assistance during the 2014 water crisis and the COVID-19 pandemic.

Financial Cooperation and Support: A bilateral currency swap agreement of USD 400 million and INR 30 billion was made which is expected to significantly alleviate ongoing economic challenges. Both parties agreed to explore further collaboration on financial issues.

Comprehensive Economic and Maritime Security Partnership: A proposal was made to establish a partnership aimed at creating stability in the Indian Ocean Region, focusing on:

• Political Exchanges: Enhanced diplomatic exchanges at various levels, including a Memorandum of Understanding (MoU) to institutionalize parliamentary cooperation.
• Development Cooperation: Initiatives included infrastructure development across sectors such as ports, healthcare, and education, completing the Greater Malé Connectivity Project, developing a commercial port at Thilafushi Island, and collaborating on agriculture and tourism investments in the atolls.
•   Trade and Economic Cooperation: Agreement to initiate discussions on a Bilateral Free Trade Agreement (FTA) and enable local currency transactions to deepen economic ties and promote investments.
• Digital and Financial Cooperation: Sharing expertise in digital services and establishing digital public infrastructure in the Maldives, including India’s Unified Payments Interface (UPI).
• Energy Cooperation: Exploring renewable energy projects, including solar power, and conducting feasibility studies for participation in the One Sun One World One Grid initiative.
• Health Cooperation: Strengthening health cooperation through improved access to affordable healthcare, recognition of Indian pharmacopoeia, and training programs for healthcare professionals.
• Defence and Security Cooperation: Acknowledgment of shared challenges in the Indian Ocean, with an agreement to enhance the capabilities of the Maldives National Defence Force (MNDF), including the ongoing 'Ekatha' harbour project.
•  Capacity Building and Training: Emphasis on tailored capacity-building initiatives, including training for civil servants and promoting women-led development.
•  People-to-People Linkages: Agreement to enhance cultural ties, establish consulates in Bengaluru and Addu City, and improve air and maritime connectivity.
• Regional and Multilateral Cooperation: Commitment to collaborate on maritime and security interests as founding members of the Colombo Security Conclave (CSC) and continue joint efforts in multilateral fora.

Importance of the Maldives for India:

•  The Maldives holds significant strategic importance for India due to its geographical proximity, which places it just 70 nautical miles from Minicoy and 300 nautical miles from India's west coast. This strategic location positions the Maldives as a crucial hub for critical commercial sea-lanes in the Indian Ocean, particularly along the 8° N and 1½° N channels. Such positioning enhances India’s maritime security and poses potential challenges from other nations' naval presences in the region.
•   India's geopolitical interests in the Maldives include securing vital sea lanes of communication essential for maritime trade and security, combating piracy and sea-based terrorism, and striving to maintain the Indian Ocean as a conflict-free zone. Additionally, exploring the blue economy and enhancing trade relations are crucial for sustainable development, alongside ensuring the safety of Indian expatriates living in the Maldives.
•  The Maldives is also significant in the context of China's "String of Pearls" initiative, which aims to establish a network of Chinese military and commercial facilities across South Asia. This raises concerns for India, emphasizing the necessity of maintaining a robust presence in the region.
•   Internal security issues complicate the geopolitical landscape, with a notable increase in the number of Maldivians joining terrorist groups amid ongoing political instability and socio-economic uncertainty. These factors raise fears that the Maldives could become a launch pad for terrorist activities targeting India.

Bilateral relations between India and the Maldives

•  Bilateral relations between India and the Maldives have deep historical roots. India was one of the first countries to recognize the Maldives after its independence in 1965, marking the beginning of a strong diplomatic relationship. India’s role as a first responder during crises—such as the 1988 coup attempt (Operation Cactus), the 2004 tsunami, and the 2014 water crisis—demonstrates its commitment to the Maldives. Furthermore, India's public health support during the COVID-19 pandemic and the delivery of measles vaccines in 2020 further highlight this commitment.
•  In terms of security and defense cooperation, a comprehensive Action Plan was signed in 2016 to strengthen defense ties. India provides around 70% of the training for the Maldivian National Defence Force (MNDF), emphasizing its role as a key partner in enhancing the Maldives' defense capabilities. The establishment of an annual Defence Cooperation Dialogue further solidifies this partnership.
•  India's development cooperation initiatives include significant projects such as the Indira Gandhi Memorial Hospital, the Maldives Institute of Technical Education, and the National College for Police and Law Enforcement. Infrastructure projects aimed at improving water and sanitation in 34 islands, developing roads in the Addu Atoll, and establishing a cancer hospital showcase India's commitment to the Maldives’ development.
•   Economically, India has become the Maldives’ second-largest trade partner in 2022 and the largest in 2023, with bilateral trade reaching nearly $1 billion in the 2023-24 period. This robust trade relationship is bolstered by financial assistance, including a $100 million aid package and a Currency Swap Agreement signed in December 2022.
• Tourism is vital to the Maldivian economy, and in 2023, Indians formed the largest group of tourists visiting the islands, with over 200,000 travelers. This trend not only reflects strong cultural ties but also emphasizes the importance of tourism in sustaining the Maldivian economy.
• Furthermore, the Indian community in the Maldives constitutes the second-largest expatriate group, with approximately 22,000 members. Indian nationals play critical roles in various sectors, comprising about 25% of the doctors and teachers in the Maldives.

Conclusion:

The meeting between PM Modi and President Muizzu marks a significant step towards a new era of cooperation, underscoring the importance of deepening bilateral ties and addressing shared challenges in a rapidly changing geopolitical landscape. The Maldives, with its strategic location and evolving partnership with India, remains a key player in regional stability and security.

Source-

https://pib.gov.in/PressReleasePage.aspx?PRID=2062780- pib

Mea website- India- Maldives relation