Economic Aid Request: Maldivian President Mohamed Muizzu is in India to seek a currency swap arrangement and debt support amid an economic crisis. He hopes for India’s assistance to prevent a financial collapse.
Focus on Bilateral Ties: The visit aims to boost India-Maldives relations, with anticipated discussions on trade, security, and infrastructure cooperation.
Importance of India-Maldives Relationship
Strategic Significance:
- Neighborhood First Policy: The Maldives is crucial to India’s ‘Neighborhood First’ policy due to its strategic location near key Indian Ocean trade routes.
- India as a First Responder: India has historically assisted the Maldives in crises, such as the 1988 coup attempt (Operation Cactus), the 2004 tsunami, and the Covid-19 pandemic.
- Security Provider: India is a key security partner, engaging in defense cooperation through joint exercises and the 2016 Defense Action Plan.
Economic and Trade Engagements:
- Tourism: Indian tourists make up a significant portion of the Maldivian tourism market.
- Trade Agreements: India is the Maldives’ second-largest trade partner, with key agreements like the USD Currency Swap Agreement between the RBI and Maldives Monetary Authority.
Development and Capacity Building:
- Infrastructure Projects: India is involved in significant projects like the Greater Male Connectivity Project and Hanimaadhoo Airport.
- Healthcare and Education: India supports the Maldives with healthcare facilities, such as the Indira Gandhi Memorial Hospital, and educational programs.
Cultural Connectivity:
- Shared Heritage: India and the Maldives share deep ethnic, linguistic, cultural, and religious ties, supported by a substantial Indian expatriate community.
Key Issues in the Relationship:
- Lakshadweep Controversy: Negative remarks by Maldivian officials about strained relations, leading to diplomatic protests.
- ‘India Out’ Campaign: This movement opposes Indian investments and military presence, viewing it as a threat to Maldivian sovereignty.
- China Factor: The Maldives’ engagement with China’s Belt and Road Initiative adds complexity, as India remains wary of Chinese influence in the region.
Way Forward:
- Domestic Tourism Development: India should enhance domestic tourism by developing unexplored coastal areas.
- Diplomatic Engagement: Regular dialogues are essential to maintain trust and address mutual concerns.
- Strategic Prudence: Both nations should avoid actions that could provoke regional tensions.
- Comprehensive Indian Ocean Strategy: India should focus on maritime security and provide economic support through initiatives like Project Mausam.
Despite occasional tensions, the strategic importance of the India-Maldives relationship ensures that both countries will continue to prioritize strong bilateral ties. A coordinated approach, blending India’s ‘Neighborhood First’ policy with the Maldives’ ‘India First’ strategy, is crucial for mutual benefit.
