{"id":42825,"date":"2024-10-07T10:13:45","date_gmt":"2024-10-07T04:43:45","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=42825"},"modified":"2025-05-05T20:45:43","modified_gmt":"2025-05-05T15:15:43","slug":"maldives-presidents-india-visit-strengthening-bilateral-relations-and-addressing-economic-challenges","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/maldives-presidents-india-visit-strengthening-bilateral-relations-and-addressing-economic-challenges\/","title":{"rendered":"Maldives President\u2019s India Visit: Strengthening Bilateral Relations and Addressing Economic Challenges"},"content":{"rendered":"<h2><strong>What\u2019s in today\u2019s article?<\/strong><\/h2>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>Significance of Maldives for India<\/strong><\/li>\n<li><strong>India \u2013 Maldives Bilateral Relation<\/strong><\/li>\n<li><strong>Visit of President of Maldives to India<\/strong><\/li>\n<\/ul>\n<h2><strong>Why in News?<\/strong><\/h2>\n<p>President of Maldives, Mohamed Muizzu, arrived India on a State visit. This is the first bilateral visit of President Dr. Muizzu to India. He had earlier visited India in June 2024 to attend the swearing-in ceremony of the Prime Minister and the Council of Ministers.<\/p>\n<p>Maldives is India&#8217;s key maritime neighbor in the Indian Ocean Region (IOR) and holds a special place in Prime Minister&#8217;s vision of \u2018SAGAR\u2019 (Security and Growth for All in the Region) and India\u2019s \u2018Neighbourhood First Policy\u2019.<\/p>\n<h2><strong>Significance of Maldives for India<\/strong><\/h2>\n<ul>\n<li><strong>Strategic Importance<\/strong>\n<ul>\n<li>Maldives is barely 70 nautical miles away from Minicoy and 300 nautical miles away from India\u2019s West coast.<\/li>\n<li>It is situated at the hub of commercial sea\u2010lanes running through Indian Ocean (particularly the 8\u00b0 N and 1 \u00bd\u00b0 N channels).<\/li>\n<li>It has potential to allow a third nation\u2019s naval presence in the area.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Geo-political interest<\/strong>\n<ul>\n<li>Securing sea lanes of communication; Fighting piracy and sea-based terrorism;\u00a0<\/li>\n<li>Making Indian Ocean a conflict free zone and restoring its status as sea of tranquil;\u00a0<\/li>\n<li>Exploring blue economy and Enhancing trade; Security of Indian expatriates working there.<\/li>\n<\/ul>\n<\/li>\n<li><strong>China Angle<\/strong>\n<ul>\n<li>The Maldives has emerged as an important &#8216;pearl&#8217; in China\u2019s \u201cString of Pearls\u201d construct in South Asia.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Internal security angle: Radicalisation<\/strong>\n<ul>\n<li>In the past, the number of Maldivians drawn towards terrorist groups like the Islamic State (IS) had increased.<\/li>\n<li>Political instability and socio-economic uncertainty are further fuelling the rise of Islamist radicalism in the island nation.<\/li>\n<li>This gives rise to the possibility of remote Maldivian islands being used as a launch pad for terror attacks against India and Indian interests.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>India \u2013 Maldives Bilateral Relation<\/strong><\/h2>\n<ul>\n<li><strong>Background<\/strong>\n<ul>\n<li>India was among the first to recognise Maldives after its independence in 1965 and to establish diplomatic relations with the country.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India as a first responder and net security provider<\/strong>\n<ul>\n<li>In 1988, under <strong>Operation Cactus<\/strong> the Indian Armed Forces helped the Government of Maldives in the neutralization of the coup attempt.<\/li>\n<li>India was the first to assist Maldives during the 2004 Tsunami as well as the water crisis in Mal\u00e9 in Dec 2014.\n<ul>\n<li>India had swift dispatch of 30,000 doses of measles vaccine in Jan 2020 to prevent an outbreak in the Maldives.<\/li>\n<\/ul>\n<\/li>\n<li>India\u2019s rapid and comprehensive assistance to the Maldives during <a href=\"https:\/\/vajiramandravi.com\/quest-upsc-notes\/covid-19\/\" target=\"_blank\">COVID-19<\/a> pandemic further reinforced India\u2019s credentials of being the first responder.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Security &amp; Defence Cooperation<\/strong>\n<ul>\n<li>A comprehensive Action Plan for Defence was also signed in April 2016 to consolidate defence partnership.<\/li>\n<li>India provides the largest number of training opportunities for Maldivian National Defence Force (MNDF), meeting around 70% of their defence training requirements. India has trained over 1500 MNDF trainees over the past 10 years.<\/li>\n<li>Annual Defence Cooperation Dialogue at level of Defence Secretary was initiated in July 2016.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Development Cooperation<\/strong>\n<ul>\n<li>The major completed and ongoing development assistance projects executed by India are:\n<ul>\n<li>Indira Gandhi Memorial Hospital\u00a0<\/li>\n<li>Maldives Institute of Technical Education (now called the Maldives Polytechnic)\u00a0<\/li>\n<li>India-Maldives Faculty of Hospitality &amp; Tourism Studies<\/li>\n<li>Technology Adoption Programme in Education Sector in Maldives<\/li>\n<li>National College for Police and Law Enforcement (NCPLE)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Infrastructure &amp; Connectivity Projects under Exim Bank Line of Credit of US$ 800 million\u00a0<\/strong>\n<ul>\n<li>The following projects are being implemented under these LoCs:\u00a0\n<ul>\n<li>Water and Sanitation in 34 Islands\u00a0<\/li>\n<li>Addu Development Project (Roads and Land Reclamation)\u00a0<\/li>\n<li>Cancer Hospital<\/li>\n<li>Gulhifalhu Port project\u00a0<\/li>\n<li>Hulhumal\u00e9 Cricket Stadium: During PM visit in June 2019, it was committed that the Stadium will be built under Indian assistance.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Greater Male Connectivity Project<\/strong>\n<ul>\n<li>The project aims to connect Male to Villingili, Gulhifalhu and Thilafushi islands through a series of bridges, causeways and roads.\u00a0<\/li>\n<li>It is funded through a separate $ 400 million LoC and $ 100 million grant from India.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Bilateral Economic and Trade Relations<\/strong>\n<ul>\n<li>India emerged as Maldives\u2019 2nd largest trade partner in 2022 &amp; the largest in 2023.\u00a0<\/li>\n<li>India-Maldives bilateral trade in 2023-24 touched almost $1billion with India\u2019s exports at $892 million and imports at $86.84 million.<\/li>\n<li>In November 2022, amid the economic challenges faced by the Maldives, India handed over a financial assistance of US$ 100 million.\u00a0<\/li>\n<li>In December 2022, the RBI signed a Currency Swap Agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework.\n<ul>\n<li>This enabled MMA to make drawls in multiple tranches up to a maximum of USD 200 million from the RBI.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Tourism<\/strong>\n<ul>\n<li>In 2023 alone, among the tourists who travelled to the Maldives, Indians formed the largest group of tourists with over 200,000 travellers.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Indian Community<\/strong>\n<ul>\n<li>Indians are the second largest expatriate community in Maldives with an approximate strength of around 22,000.\u00a0<\/li>\n<li>About 25% of Doctors and Teachers in Maldives are Indian nationals.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Visit of President of Maldives to India<\/strong><\/h2>\n<ul>\n<li>Muizzu&#8217;s visit comes amid strained ties following his election victory last year, which was marked by an \u2018India Out\u2019 campaign opposing India&#8217;s military presence in the Maldives.\n<ul>\n<li>Muizzu&#8217;s current stance emphasizes mutual respect, non-interference, and collaboration, signaling a significant shift from his earlier anti-India rhetoric.<\/li>\n<\/ul>\n<\/li>\n<li>During his five-day visit to India, Muizzu will discuss strengthening ties and addressing the Maldives&#8217; fiscal challenges, as the country faces the risk of a debt default.\u00a0\n<ul>\n<li>With its foreign exchange reserves down to $440 million and substantial debt repayments due in 2025 and 2026, the Maldives has received a credit rating downgrade from Moody&#8217;s.<\/li>\n<\/ul>\n<\/li>\n<li>India has already extended $1.4 billion in financial support to the Maldives for various infrastructure projects, and the visit is seen as an opportunity to reinforce bilateral cooperation.<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q.1. What are the key areas of discussion during President Mohamed Muizzu\u2019s visit to India?<\/strong><\/h3>\n<p>President Muizzu\u2019s visit focuses on seeking financial aid for the Maldives\u2019 economic challenges, enhancing bilateral cooperation, and strengthening India-Maldives relations, particularly in strategic areas such as the Indian Ocean Region and infrastructure development.<\/p>\n<h3><strong>Q.2. How does the Maldives&#8217; debt crisis impact its relationship with India?<\/strong><\/h3>\n<p>The Maldives faces a potential debt default, with foreign exchange reserves dropping significantly. India has offered $1.4 billion in financial support, and President Muizzu\u2019s visit underscores the importance of this aid in addressing the nation\u2019s economic challenges and reinforcing diplomatic ties.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/india\/maldives-president-mohamed-muizzu-meets-pm-modi-today-says-india-aware-of-fiscal-situation-will-ease-burden-9607272\/\" target=\"_blank\" rel=\"nofollow noopener\">Maldives President Muizzu meets PM Modi today, says India aware of fiscal situation, will ease burden<\/a> | <a href=\"https:\/\/www.mea.gov.in\/Portal\/ForeignRelation\/Bilateral-Brief-Unclassified-March-2024.pdf\" target=\"_blank\" rel=\"nofollow noopener\">MEA<\/a> | <a href=\"https:\/\/www.thehindubusinessline.com\/economy\/india-hasnt-proposed-fta-with-maldives-but-is-open-to-it-mea\/article68232753.ece\" target=\"_blank\" rel=\"nofollow noopener\">The Hindu Businessline<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Mohamed Muizzu\u2019s visit to India marks a crucial step in improving India-Maldives ties. Explore discussions on fiscal aid, cooperation, and addressing economic challenges amidst the Maldives&#8217; debt crisis.<\/p>\n","protected":false},"author":5,"featured_media":42826,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-42825","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/42825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=42825"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/42825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/42826"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=42825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=42825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=42825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}