Syllabus: GS2/IR
Context
- Maldivian Foreign Minister has arrived in New Delhi to lead the Maldivian delegation at the 2nd High Level Core Group (HLCG) meeting.
About
- Both foreign ministers will review the progress of the India–Maldives comprehensive economic and maritime security partnership.
- The India-Maldives vision document on a comprehensive economic and maritime security partnership was adopted by Prime Minister Narendra Modi and Maldivian President last year.
Key Highlights of the Vision Document
- Bilateral Commitment and Financial Support: India reaffirmed its commitment under ‘Neighbourhood First’ and Vision SAGAR.
- India extended emergency financial assistance (rollover of $100 million in T-bills and currency swap worth $400 million + ₹30 billion).
- Framework for a Comprehensive Partnership: A new strategic framework is established for a Comprehensive Economic and Maritime Security Partnership, intended to be people-centric and future-oriented.
- Serve as a stabilizing force in the Indian Ocean Region.
- Development Cooperation: Enhanced infrastructure projects such as ports, airports, housing, schools, roads, hospitals.
- Trade and Economic Cooperation: Explore a Bilateral Free Trade Agreement (FTA).
- Enable local currency trade settlement to reduce dollar dependence.
- Boost investments and ease of doing business.
- Support Maldivian economic diversification (blue economy, fisheries, oceanography).
- Collaboration on Digital Public Infrastructure: UPI, Digital ID, Gati Shakti.
- Expansion of RuPay and digital payment infrastructure.
- Shared expertise in fintech and digital governance.
- Energy Cooperation: Focus on renewables (solar power), energy efficiency.
- Participation in One Sun One World One Grid initiative.
- Institutional cooperation through joint research, training, and investment.
- Health Cooperation: Access to affordable Indian healthcare and generic medicines (Jan Aushadhi Kendras).
- Recognition of Indian Pharmacopoeia in Maldives.
- Regional and Multilateral Cooperation: Work together in the Colombo Security Conclave (CSC) and other multilateral fora.
- Emphasis on maritime safety, regional peace, and mutual representation.
- Implementation Mechanism: A High-Level Core Group (HLCG) has been formed to monitor and oversee the implementation of all cooperation initiatives.
- The group will include senior representatives from both governments.
Significance
- Regional Stability: This partnership is crucial for stability in the Indian Ocean amidst growing Chinese presence in the region.
- Diplomatic Maturity: Shows both sides’ willingness to move past tensions and focus on long-term shared interests.
- People-Centric Focus: Heavy emphasis on health, education, housing, and livelihood is notable.
- Economic Sovereignty for Maldives: Local currency trade and support for diversification give Maldives more economic autonomy.
- Security Balance: India remains a key security partner, but through cooperation tailored to Maldivian preferences.
| Highlights of India – Maldives Relations – Participation in Multiple Forums: Both nations are founding members of the South Asian Association for Regional Cooperation (SAARC), the South Asian Economic Union and signatories to the South Asia Free Trade Agreement. – Economic partnership: India emerged as Maldives’ largest trade partner in 2023. 1. India is one of the biggest investors and tourism markets for the Maldives, with significant trade and infrastructure projects underway. – Defense and Security Cooperation: Since 1988, defence and security has been a major area of cooperation between India and Maldives. 1. A comprehensive Action Plan for Defence was also signed in 2016 to consolidate defence partnership. 2. Estimates suggest that almost 70% of Maldives’ defence training is done by India. – Tourism: In 2023, India is the leading source market for Maldives with a 11.8% market share. 1. In March 2022, India & Maldives agreed for an open skies arrangement which will further improve connectivity between two countries. – Connectivity: The Male to Thilafushi Link project, popularly known as the Greater Male Connectivity Project (GMCP), is a USD 530 million infrastructure project. 1. The project aims to connect Male to Villingili, Gulhifalhu and Thilafushi islands through a series of bridges, causeways and roads. 2. The project is crucial for the proposed Gulhifalhu Port, and will be a major catalyst for the Maldivian economy. |
Way Ahead
- Maldives is India’s key maritime neighbour and an important partner in India’s ‘Neighbourhood First’ policy and vision MAHASAGAR which is Mutual and Holistic Advancement for Security and Growth Across Regions.
- By acknowledging and addressing the challenges, India and the Maldives can navigate the complexities of their relationship and build a stronger, more resilient, and mutually beneficial partnership for the future.
Source: TH
