India and the Maldives have recently made headlines after signing four Memorandums of Understanding (MoUs). The MOUs consist of two memorandums for High Impact Community Development Projects, an agreement on Cooperation in Sports and Youth Affairs, and a grant worth USD 100 million for the Greater Male Connectivity Project (GMCP).
Significance of Four MoUs
These MoUs hold symbolic value for both countries. They signify the strength of the relationship between India and the Maldives and represent the multi-faceted development partnership designed to meet each country’s specific needs. Consequently, the Maldives holds a central role in India’s ‘Neighbourhood First’ policy, and inversely, India is a significant part of the Maldives’ ‘India First’ foreign policy.
The Greater Male Connectivity Project (GMCP)
The GMCP project is the largest-ever infrastructure project undertaken in the Maldives. It is funded through a financial package from India consisting of a USD 100 million grant and a new line of credit of USD 400 million. The project aims to connect Malé, the capital, with three neighbouring islands, Villingili, Gulhifalhu, and Thilafushi, through a newly constructed bridge-and-causeway link. This largest civilian infrastructure project is projected to boost economic activity, generate employment and promote holistic urban development in the Malé region.
Recent Initiatives Between India and the Maldives
Several initiatives have been carried out by the Indian government to aid the Maldives. In April 2020, India supplied 6.2 tonnes of essential medicines under Operation Sanjeevani to combat the pandemic. Following this, in May 2020, India, under Mission Sagar, provided food items and medical assistance teams to the countries in the Southern Indian Ocean, including the Maldives.
The Indian Government has also assured that the Maldives will be one of the first countries to receive Covid-19 vaccines as soon as it is developed in India.
In a bid to reconnect countries or states with good domestic containment of Covid-19 and allow them to restart trade and tourism, a bilateral air travel bubble was established in August 2020, connecting five Indian cities with Malé through thirteen weekly flights.
Financial Aid From India to the Maldives
In October 2020, an agreement was signed between India and the Maldives for a USD 400 million line of credit from the Export-Import Bank of India (Exim Bank), India’s premier export finance institution. This soft loan has been used to fund connectivity, water, and sewerage projects, the Addu Development Project, construction of an international cricket stadium, Gulhifalhu port, among others.
India-Maldives Partnership in Global Arena
On a global platform, both nations have consistently supported each other in multilateral institutions such as the United Nations (UN), the Commonwealth, the Non-Aligned Movement (NAM), and the South Asian Association for Regional Cooperation (SAARC). India has also supported the candidature of the Maldivian Foreign Minister for the Presidency of the 76th session of the UN General Assembly in 2021.
In the context of China’s increasing influence in the Indian Ocean Region (IOR), India’s ties with the Maldives hold crucial importance. Despite criticism from the opposition for being too pro-India, the current Maldivian President continues to strengthen relations with India. On the other hand, the former president, who had close ties with China, was removed from office in 2018.