India and Maldives Signed 4 Agreements-Key Facts

India and Maldives signed four agreements on November 9, 2020. One of the signed agreement include- USD 100 million grant for a connectivity project. Foreign secretary Harsh Shringla and the Maldivian leadership by Abdul Ghafoor Mohamed discussed on areas and way in order to boost economic recovery that has been widely affected amid the Covid-19 pandemic.


Both sides signed four memorandums of understanding (MoUs). These are as follows:

  1. One of the MoU include signing of a grant of $100 million by India for the $500-million Greater Male Connectivity Project (GMCP). The GMCP project will link capital Male with other three islands. India would be providing a $400-million line of credit for the project. This project is the largest such infrastructure venture undertaken in the Maldives.
  2. India agreed to set up soil and plant testing laboratories.
  3. A MoU was signed establishing a drug detox facility.
  4. Another MoU include a cooperation in sports and youth affairs.


The signed MoU makes the part of India’s commitment to provide a five-pronged package that include air, sea, intra-island and telecommunications to help the country deal with the economic impact of the Covid-19 pandemic. The five packages include-

  1. Greater Male Connectivity Project (GMCP): This is a financial package that consists of a grant of 100 million USD along with the new line of credit of 400 million USD. This is the largest civilian infrastructure project in Maldives that connects Male and the three neighboring islands namely Villingili, Gulhifalhu and Thilafushi by constructing a bridge and a causeway link.
  2. Direct Cargo Ferry Service: The ferry service would run between India and Maldives. This ferry service will enhance the sea connectivity and also provide predictability in supplies for importers of Maldives and exporters of India.
  3. Air Travel Bubble Between India and Maldives: The air travel bubble was started between two countries to facilitate the movement of people for employment, tourism and medical emergencies. Maldives became the first neighboring country of India with which an air bubble service was operationalized.
  4. Quotas for Supply of Essential Commodities: The quotas for the supply of essential commodities was extended for 2020-21. These essential commodities include food items, river sand and stone aggregates so as to assure food security and supply of essential construction items.
  5. Financial Aid: India would also provide a financial aid of 250 million USD to Maldives in addition.