India-Maldives Bilateral Relationship

28-10-2023

12:02 PM

1 min read

What’s in Today’s Article?

Maldives has started discussion with India for the removal of the latter's military presence in the region.

India and Maldives share ethnic, linguistic, cultural, religious and commercial links and enjoy close, 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.

Maldives’ proximity to the west coast of India (it is barely 70 nautical miles away from Minicoy).
The country is situated at the hub of commercial sea-lanes running through the Indian Ocean.
Also, it has the potential to allow a third nation’s naval presence, for example China, in the area.

Bilateral relations have been nurtured and strengthened by regular contacts at the highest levels.
India’s relationship with the Maldives is free of any politically contentious issues.
India’s prompt assistance during the 1988 coup attempt, led to development of trust and long-term and friendly bilateral relations with the Maldives.
- Under Operation Cactus the Indian Armed Forces helped the Government of Maldives in the neutralization of the coup attempt.
‘India First’ has been a stated policy of the Government of Maldives.
On international issues Maldives has consistently supported India in multilateral fora, such as the UN, the Commonwealth, the NAM (Non-Alignment Movement) and the SAARC (South Asian Association of Regional Cooperation).

India and Maldives signed a trade agreement in 1981, which provides for export of essential commodities.
Growing from modest beginnings, India-Maldives bilateral trade in 2020 stood at US$ 213.91 million with trade balance heavily in favour of India.
State Bank of India has been playing a vital role in the economic development of the Maldives since 1974 by providing loan assistance for promotion of island resorts, export of marine products and business enterprises.

India provides the largest number of training opportunities for Maldivian National Defence Force (MNDF), meeting around 70% of their defence training requirements.
A Comprehensive Action Plan for Defence was also signed in April 2016 to consolidate defence partnership.

Indians are the second largest expatriate community in Maldives with an approximate strength of around 22,000.
About 25% of Doctors and Teachers in Maldives are Indian nationals.

Tourism directly accounts for about quarter of Gross Domestic Product (GDP) of Maldives and indirectly for a much larger proportion of GDP.
India remained the top market for Maldives tourism in 2022 dominating over 14% with 240,000 arrivals.

Maldives has started discussion with India for the removal of the latter's military presence in the region.
Around 75 Indian military officials are currently based out of the country and maintain New Delhi-sponsored radar stations and surveillance aircraft.
Indian warships help patrol Maldives’ exclusive economic zone.
Reason behind Discussions on Removal of India’s Military Presence in Maldives:
- The removal of foreign troops had been one of the key poll promises from Maldives’ new President-elect Mohamed Muizzu.
- During a heated Presidential elections, he had accused incumbent Ibrahim Solih of allowing India unchecked sway over Maldives’ internal affairs.
- He also claimed that the current leader had surrendered the country’s sovereignty by allowing Indian troops to be stationed in the area.
Government of India’s Response:
- India is yet to officially address the calls for removal of troops and has merely voiced hope for constructive engagement with the incoming administration.

India launched Operation Cactus to save the Maldivian government against a coup attempt at the request of Maldives’ President in 1988.

The maritime boundary between the Maldives and India runs through the Eight Degree Channel. It separates the islands of Minicoy and Maldives.

Source: Incoming Maldives president says ‘very successful’ talks underway for removal of Indian troops | Reuters