Visiting India from 16th to 18th December 2018 was the President of the Republic of Maldives, Ibrahim Mohamed Solih. This marked his first international visit after assuming office in November 2018. The state visit brought forth a variety of agreements and cooperation plans aimed at enhancing bilateral ties between the two nations.
Signed Agreements and Outcomes of the Visit
During the visit, both countries signed several agreements and Memorandums of Understanding (MoU). These included an Agreement on the Facilitation of Visa Arrangements, a Memorandum of Understanding on Cultural Cooperation, and another MoU aimed at improving the ecosystem for agribusiness. Both countries also agreed to cooperate in the field of communications, technology, and electronics.
The visit resulted in India announcing a financial assistance package of US$1.4 billion. This support would come in the form of budgetary support, currency swaps, and concessional lines of credit, with the aim of fulfilling socio-economic development programmes in the Maldives.
Countries Agreed to Work Together
Both India and the Maldives concurred on working together across several areas including health, mutual legal assistance, investment promotion, human resource development, and tourism. The Maldives reaffirmed its “India-First Policy,” demonstrating its commitment to closely work with India.
| Area of Cooperation | Details |
|---|---|
| Health | Collaboration for better healthcare. |
| Mutual Legal Assistance | Significant measures towards legal aid. |
| Investment Promotion | Joint ventures and opportunities. |
| Human Resource Development | Training and skill development initiatives. |
| Tourism | Enhanced tourism opportunities and exchanges. |
Security and Counter-Terrorism Cooperation
The countries agreed on the significance of maintaining peace and security in the Indian Ocean region. They reaffirmed their commitment to increased cooperation in the fight against terrorism, a shared concern for both nations.
India-Maldives Relations: A Historical Overview
India shares deep historical, cultural, and economic ties with the Maldives. After recognising Maldivian independence in 1965, India was among the first countries to establish diplomatic relations with the island nation, setting up an embassy in Malé in 1972. Since then, India’s bilateral assistance and financial aid have been reciprocated by the Maldives through its “India first” policy.
The Strategic Importance of Maldives for India
The Maldives holds strategic importance for India due to its advantageous location in the Indian Ocean. The archipelago is situated next to key shipping lanes, ensuring uninterrupted energy supplies to many countries including China, Japan, and India. As a result, over 97% of India’s international trade by volume and 75% by value passes through this region.
As the major South Asian player and a ‘net security provider’ in the Indian Ocean region, it is crucial for India to maintain security and defence cooperation with the Maldives. The Maldives also contributes to India’s influence in the region as a member of the South Asian Association for Regional Cooperation (SAARC). With China’s naval expansion into the Indian Ocean, the strategic significance of the Maldives has come into sharper focus.
Beyond geopolitics, the Maldives holds significance for India on a person-to-person level too. A significant Indian diaspora in the Maldives works across sectors such as hospitality, education, and healthcare. Meanwhile, India is a preferred destination for the Maldivians for purposes like education, medical treatment, recreation, and business.
