{"id":49341,"date":"2025-07-26T21:28:37","date_gmt":"2025-07-26T15:58:37","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=49341"},"modified":"2025-07-26T21:31:22","modified_gmt":"2025-07-26T16:01:22","slug":"pm-state-visit-to-maldives","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/26-07-2025\/pm-state-visit-to-maldives","title":{"rendered":"PM State Visit to Maldives"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/IR<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u200bPrime Minister Modi paid a <strong>state visit to Maldives.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The two sides exchanged four<strong> Memoranda of Understanding (MoUs) and signed three agreements.<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Cooperation in several key sectors<\/strong>, including fisheries, aquaculture, tourism, environment, digital solutions, and finalising the terms of reference to <strong>launch negotiations of a Free Trade Agreement.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>India agreed to extend a <strong>fresh Line of Credit (LoC) of \u20b94,850 crore,<\/strong> to support the island as it faces an enduring<strong> twin deficit problem.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>This is the<strong> first time that such credit is being extended<\/strong> to the Maldives in Indian Rupee.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Both signed an <strong>amendatory agreement<\/strong> on reducing the Maldives\u2019s annual debt repayment obligations.&nbsp;<\/li>\n\n\n\n<li><strong>Significance:<\/strong> Observers of India-Maldives ties see the renewed collaboration between the countries as a necessary and positive development.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Brief on India &#8211; Maldives Relations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Participation in Multiple Forums:<\/strong> Both nations are <strong>founding members<\/strong> of the <strong>South Asian Association for Regional Cooperation (SAARC)<\/strong>, the South Asian Economic Union and signatories to the South Asia Free Trade Agreement.&nbsp;<\/li>\n\n\n\n<li><strong>Economic partnership:<\/strong> India emerged as the Maldives\u2019 second largest trade partner in 2022 and became the largest trade partner in 2023, with bilateral trade reaching approximately <strong>$548 million in 2023.<\/strong><\/li>\n\n\n\n<li><strong>Tourism:<\/strong> In 2023, India is the leading source market for Maldives with a <strong>11.8% market share.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>In March 2022, India &amp; Maldives agreed for an open skies arrangement which will further improve connectivity between two countries.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Defense and Security Cooperation: Since 1988,<\/strong> defence and security has been a major area of cooperation between India and Maldives.\n<ul class=\"wp-block-list\">\n<li>A <strong>comprehensive Action Plan for Defence<\/strong> was also signed in <strong>2016<\/strong> to consolidate defence partnership.<\/li>\n\n\n\n<li>Estimates suggest that almost <strong>70 per cent of Maldives\u2019 defence training is done by India <\/strong>\u2014 either on the islands or in India\u2019s elite military academies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Connectivity: <\/strong>The Male to Thilafushi Link project, popularly known as the <strong>Greater Male Connectivity Project (GMCP)<\/strong>, is a USD 530 million infrastructure project aimed at establishing a direct link between the capital city of the Maldives and Thilafushi, an island located in the South Indian Ocean.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of Maldives:&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strategic Importance:<\/strong> The Maldives is strategically located in the Indian Ocean, and its stability and security are of interest to India.<\/li>\n\n\n\n<li><strong>Trade Route: <\/strong>Situated along <strong>crucial maritime trade routes<\/strong> between the Gulf of Aden and the Strait of Malacca, the <strong>Maldives acts as a &#8220;toll gate&#8221; for nearly half of India&#8217;s external trade and 80% of its energy imports.<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXdKgChLObuHZePL79K2G0A3871KUxvLSsKnYU6GJ5xVi_Dn-G7gHXviwvfVNyz1DNEzl4s7wsAmiJQBkOcKLmt8QXW2mGVnAggtdRFQiumxtQUVlNuSr_B0W8rAhxkaa-kvekszlw?key=-jYmd31-jwkP22HPiVbKoQ\" alt=\"\" style=\"width:516px;height:auto\"\/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Counterbalancing China: <\/strong>Maldives presents an opportunity for India to counterbalance China&#8217;s growing influence in the Indian Ocean, fostering regional balance of power.<\/li>\n\n\n\n<li><strong>Diplomatic Leverage: <\/strong>Strong bilateral relations with the Maldives enhance India\u2019s leadership role in the Indian Ocean Region (IOR) and in forums like the Indian Ocean Rim Association (IORA).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Change in Power:<\/strong> Changes in government create uncertainty and complicate long-term cooperation projects.<\/li>\n\n\n\n<li><strong>Chinese Influence: <\/strong>China&#8217;s growing economic presence in the Maldives, evidenced by investments in infrastructure projects and debt-trap diplomacy, is perceived as a challenge to India&#8217;s strategic interests in the region.<\/li>\n\n\n\n<li><strong>Non-traditional threats:<\/strong> Piracy, terrorism, and drug trafficking remain concerns in the region, requiring continuous collaboration and intelligence sharing between India and the Maldives.<\/li>\n\n\n\n<li><strong>Extremism and radicalization: <\/strong>The Maldives&#8217; vulnerability to religious extremism and radicalization poses a security threat that necessitates joint efforts in countering such ideologies.<\/li>\n\n\n\n<li><strong>Trade imbalance:<\/strong> The significant trade imbalance between India and the Maldives leads to resentment and calls for diversifying trade partnerships in Maldives.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The evolution of India-Maldives relations reflects a combination of geopolitical dynamics, changes in leadership, and shared regional interests.&nbsp;<\/li>\n\n\n\n<li>India is steadfast in its commitments towards Maldives and <strong>has always walked the extra mile<\/strong> towards building relations.&nbsp;<\/li>\n\n\n\n<li>By acknowledging and addressing the challenges, India and the Maldives can <strong>navigate the complexities of their relationship and build a stronger, more resilient, and mutually beneficial partnership<\/strong> for the future.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2148655#:~:text=President%20Muizzu%20appreciated%20India&#039;s%20commitment,building%2C%20climate%20action%20and%20health.\" rel=\"nofollow noopener\" target=\"_blank\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">\u200bPrime Minister Modi paid a state visit to Maldives.<\/li>\n<p><\/p>\n<h3><strong>Challenges:<\/strong><\/h3>\n<li class=\"ms-5\">Change in Power: Changes in government create uncertainty and complicate long-term cooperation projects.<\/li>\n<li class=\"ms-5\">Chinese Influence: China&#8217;s growing economic presence in the Maldives, evidenced by investments in infrastructure projects and debt-trap diplomacy, is perceived as a challenge to India&#8217;s strategic interests in the region.<\/li>\n<li class=\"ms-5\">Non-traditional threats: Piracy, terrorism, and drug trafficking remain concerns in the region, requiring continuous collaboration and intelligence sharing between India and the Maldives.<\/li>\n<li class=\"ms-5\">Extremism and radicalization: The Maldives&#8217; vulnerability to religious extremism and radicalization poses a security threat that necessitates joint efforts in countering such ideologies.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/26-07-2025\/pm-state-visit-to-maldives\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-49341","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=49341"}],"version-history":[{"count":5,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49341\/revisions"}],"predecessor-version":[{"id":49373,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49341\/revisions\/49373"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=49341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=49341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=49341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}