Why in the News?

• Maldives has started discussion with India for the removal of the latter's military presence in the region.

What’s in Today’s Article?

• India – Maldives bilateral relations (Background, political, bilateral, defence, tourism factors)
• News Summary

India – Maldives Bilateral Relationship:

• India and Maldives share ethnic, linguistic, cultural, religious and commercial links and enjoy close, cordial and multi-dimensional relations.
• India was among the first to recognise Maldives after its independence in 1965 and to establish diplomatic relations with the country.

Maldives’ Strategic Significance for India:

• Maldives’ proximity to the west coast of India (it is barely 70 nautical miles away from Minicoy).
• The country is situated at the hub of commercial sea-lanes running through the Indian Ocean.
• Also, it has the potential to allow a third nation’s naval presence, for example China, in the area.

Political Relations:

• Bilateral relations have been nurtured and strengthened by regular contacts at the highest levels.
• India’s relationship with the Maldives is free of any politically contentious issues.
• India’s prompt assistance during the 1988 coup attempt, led to development of trust and long-term and friendly bilateral relations with the Maldives.
  • Under Operation Cactus the Indian Armed Forces helped the Government of Maldives in the neutralization of the coup attempt.
• ‘India First’ has been a stated policy of the Government of Maldives.
• On international issues Maldives has consistently supported India in multilateral fora, such as the UN, the Commonwealth, the NAM (Non-Alignment Movement) and the SAARC (South Asian Association of Regional Cooperation).

Bilateral Trade:

• India and Maldives signed a trade agreement in 1981, which provides for export of essential commodities.
• Growing from modest beginnings, India-Maldives bilateral trade in 2020 stood at US$ 213.91 million with trade balance heavily in favour of India.
• State Bank of India has been playing a vital role in the economic development of the Maldives since 1974 by providing loan assistance for promotion of island resorts, export of marine products and business enterprises.

Defence Cooperation:

• India provides the largest number of training opportunities for Maldivian National Defence Force (MNDF), meeting around 70% of their defence training requirements.
• A Comprehensive Action Plan for Defence was also signed in April 2016 to consolidate defence partnership.

Indian Community:

• Indians are the second largest expatriate community in Maldives with an approximate strength of around 22,000.
• About 25% of Doctors and Teachers in Maldives are Indian nationals.

Tourism:

• Tourism directly accounts for about quarter of Gross Domestic Product (GDP) of Maldives and indirectly for a much larger proportion of GDP.
• India remained the top market for Maldives tourism in 2022 dominating over 14% with 240,000 arrivals.

News Summary:

• Maldives has started discussion with India for the removal of the latter's military presence in the region.
• Around 75 Indian military officials are currently based out of the country and maintain New Delhi-sponsored radar stations and surveillance aircraft.
• Indian warships help patrol Maldives’ exclusive economic zone.
• Reason behind Discussions on Removal of India’s Military Presence in Maldives:
  • The removal of foreign troops had been one of the key poll promises from Maldives’ new President-elect Mohamed Muizzu.
  • During a heated Presidential elections, he had accused incumbent Ibrahim Solih of allowing India unchecked sway over Maldives’ internal affairs.
  • He also claimed that the current leader had surrendered the country’s sovereignty by allowing Indian troops to be stationed in the area.
• Government of India’s Response:
  • India is yet to officially address the calls for removal of troops and has merely voiced hope for constructive engagement with the incoming administration.