New Delhi: India and the Maldives have recently made significant strides in improving their relationship. During a meeting on October 7, 2024, Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu reviewed their bilateral ties and agreed to transform their relationship into a Comprehensive Economic and Maritime Security Partnership.
This new partnership focuses on various areas such as political exchanges, development cooperation, health, education, and promoting bilateral investments. This positive development marks a turnaround in their relationship, which had seen some tensions in the past.
President Mohamed Muizzu's attitude towards India has undergone a notable shift since his election. Initially, Muizzu was known for his "India Out" campaign, which called for the withdrawal of Indian military personnel from the Maldives and fostered anti-India sentiments, causing significant tension between the two countries.
However, recent developments indicate a significant change in his approach. Muizzu's recent visit to India from October 6 -10, 2024, marked a significant diplomatic reset. During this visit, he engaged in high-level discussions with Prime Minister Narendra Modi and signed several important agreements, including a currency swap and various development projects.
Facing an economic crisis, Muizzu sought India's assistance, demonstrating a pragmatic shift towards cooperation. He expressed confidence that India would support the Maldives in overcoming its economic challenges. Muizzu has made public statements emphasising the importance of close relations with India, describing India as the Maldives' "closest friendly country and closest neighbour.”
PM Modi and President Muizzu’s meeting during the latter’s visit to India from October 6 to October 10, 2024, marks a significant step in resetting and strengthening the ties between the two countries, focusing on mutual growth and stability.
The Comprehensive Economic and Maritime Security Partnership between India and the Maldives is a significant step forward in their bilateral relations. This partnership aims to enhance cooperation in economic cooperation, maritime security, development cooperation
political and strategic exchanges. Both countries are focusing on boosting bilateral trade and investment. This includes promoting joint ventures and collaborations in various sectors such as tourism, fisheries, and infrastructure development.
Given the strategic location of the Maldives in the Indian Ocean, maritime security is a crucial aspect of this partnership. India and the Maldives are working together to ensure the safety and security of the region's maritime routes, which are vital for international trade. India has been a major development partner for the Maldives, providing assistance in areas like health, education, and infrastructure.
This partnership aims to further strengthen these ties and support the Maldives in its development goals.
Regular high-level visits and dialogues between the two countries are planned to ensure continuous engagement and cooperation on various strategic issues. This partnership reflects a mutual commitment to fostering a stable, secure, and prosperous region.
In addition to economic and maritime security, India and the Maldives cooperate in several other important areas including political and parliamentary engagement, digital and financial cooperation, capacity building and training, disaster management and cybersecurity, marine scientific research.
Over the years, India has been a significant development partner for the Maldives, providing assistance across various sectors to support the country's growth and stability. New Delhi has funded the Greater Male Connectivity Project, which aims to link key islands through modern transport networks.
Additionally, it has supported the development of roads, bridges, and airports. Recently, India offered financial support to the Maldives, including a $100 million treasury bills rollover and a $400 million currency swap agreement. This financial assistance is crucial for the Maldives' economic stability and development.
India has also been actively involved in improving health and education facilities in the Maldives. This includes providing medical assistance, scholarships for Maldivian students, and support for educational institutions. India has consistently provided disaster relief and humanitarian aid to the Maldives during times of need. This includes assistance during natural disasters and the COVID-19 pandemic. Additionally it has focused on capacity building and training programs for Maldivian professionals in various fields, including defence, healthcare, and public administration.
These efforts reflect India's commitment to supporting the Maldives in its development journey and strengthening the bilateral relationship between the two countries.
Both countries have agreed to increase political cooperation, including more exchanges at the leadership, ministerial, and parliamentary levels.
This helps in fostering mutual understanding and collaboration on various strategic issues. India and the Maldives are working together to enhance digital services and financial systems. This includes initiatives to improve governance through digital means and financial support mechanisms. India and the Maldives engage in joint marine scientific research, which includes data sharing and collaboration on marine conservation efforts.
On top of the Comprehensive Economic and Maritime Security Partnership, Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu signed five agreements during their recent meeting, including a currency swap agreement and initiatives for judicial training, corruption prevention, law enforcement training, and sports and youth affairs. These agreements and initiatives reflect a significant diplomatic shift and a commitment to deepening the ties between India and the Maldives.
The currency swap agreement will allow the Maldives to draw up to $400 million against the Maldivian Rufiyaa and 30 billion Indian rupees for business transactions. This agreement is crucial for addressing the Maldives' foreign exchange issues. The RuPay card was launched in the Maldives will facilitate financial transactions between the two countries
President Muizzu’s visit saw the inauguration of the new runway at Hanimaadhoo International Airport and the handing over of 700 social housing units built under EXIM Bank’s Buyers’ Credit Facilities. On the defence cooperation front, India has agreed to refit the Maldivian Coast Guard Ship Huravee on a gratis basis, enhancing maritime security cooperation.
The Comprehensive Economic and Maritime Security Partnership between India and the Maldives is likely to have several positive implications not just for India and the Maldives but regionally. Enhanced maritime security cooperation between India and the Maldives will contribute to the overall security of the Indian Ocean.
This will lead to increased stability in the region, benefiting all countries that rely on these maritime routes for trade. The focus on economic cooperation and development projects could create new opportunities for regional trade and investment. Neighbouring countries might seek to engage in similar partnerships to boost their own economic growth.
The improved strategic partnership between India and the Maldives could also affect the influence of external powers, such as the United States and China, in the region. These countries may need to adjust their policies and engagements to account for the strengthened India-Maldives relationship.
President Muizzu has invited Prime Minister Modi to visit the Maldives next year to commemorate the 60th anniversary of formal diplomatic relations. The relationship between India and the Maldives is set to grow stronger, with a focus on greater stability, economic growth, and cooperation in the region, while also prompting other regional players to adapt to the changing dynamics.
