Foreign Policy Watch: India-Maldives

Foreign Policy Watch: India-Maldives

India signs $750-mn currency swap deal with forex-starved Maldives

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SAARC Currency Swap Framework

Why in the News?

The RBI has announced a Currency Swap Agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework 2024-27.

India’s Financial Support to Maldives

  • India will extend financial support to the Maldives, providing $400 million under the US Dollar/Euro Swap Window.
  • Additionally, ₹30 billion (approximately $357 million) will be made available under the INR Swap Window.
  • The Currency Swap Agreement will remain valid until June 18, 2027.

About SAARC Currency Swap Framework:

Details
Objective To provide short-term liquidity support to SAARC member countries during financial crises or instability.
Administered by Reserve Bank of India (RBI)
Launch Year 2012
Countries Involved All SAARC members: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
Facility Swap arrangement in US Dollar, Euro, or Indian Rupee.
Interest Rate Based on the currency borrowed, includes a margin over international benchmark rates.
Purpose To address the balance of payment crises and provide financial stability.
Recent Users Sri Lanka, Maldives

 

Maldives’ Debt Situation

  • The Maldives’ debt is now estimated at 110% of its gross domestic product (GDP), with increasing risks of defaulting on its sukuk (Islamic bond).
  • A failure to make payments would mark the world’s first default of an Islamic bond.
    • Fitch Ratings estimates that the Maldives’ external debt obligations will reach $557 million by 2025 and exceed $1 billion by 2026.
    • The country’s foreign reserves stood at just $437 million at the end of August, only enough to cover one-and-a-half months of imports.
    • India provided a $50 million lifeline to the Maldives to help avoid this outcome.
  • The Export-Import Bank of India is owed nearly $400 million, while the Export-Import Bank of China is owed about $530 million as of last year.

Significance of India’s Assistance

  • Debt Relief: India’s financial aid, including a $50 million lifeline, would help the Maldives avoid debt default and stabilize its economy.
  • Geopolitical Influence: With this, India can counter China’s influence in the Maldives, strengthening its strategic position in the Indian Ocean.
  • Diplomatic Reset: India’s support strengthens diplomatic relations, aiding the Maldives in debt restructuring and global partnerships.

PYQ:

[2019] In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?

  1. The foreign currency earnings of India’s IT sector
  2. Increasing the government expenditure
  3. Remittances from Indians abroad

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 3 only

(c) 2 only

(d) 1, 2 and 3

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Foreign Policy Watch: India-Maldives

From China tilt to a balancing with Beijing and Delhi  

Note4Students

From UPSC perspective, the following things are important :

Mains level: Economic difficulties in Male

Why in the news?

Amid mounting domestic and foreign policy challenges in Male, Mohamed Muizzu appears to be seeking reconciliation with India.

Economic Difficulties in Maldives

  • Debt Burden: Maldives faces severe economic strain with a debt-to-GDP ratio of 110% and significant debt servicing obligations, including around $512 million annually in 2024 and 2025.
  • Foreign Reserves: Foreign reserves are critically low at $622 million, insufficient to cover debt maturities and sustain imports amid rising inflation.
  • Dependence on Imports: Heavy reliance on imports for essential goods exacerbates economic vulnerabilities, particularly amidst food and fuel inflation.
  • Revenue Generation: The government struggles with low domestic revenue generation capacity, further complicating fiscal management and debt sustainability.
  • Diversification Efforts: Efforts to diversify economic partnerships beyond traditional allies like India and China reflect a strategy to mitigate economic dependencies and attract diverse investments.

What do the ties between India and China imply?

  • Geopolitical Competition: India and China’s engagements in countries like the Maldives reflect a broader competition for influence in the Indian Ocean region. Both countries strategically invest in infrastructure and security partnerships to enhance their regional foothold.
  • Economic Leverage: China’s substantial investments in the Maldives, including infrastructure projects under the Belt and Road Initiative (BRI), provide economic leverage but also raise concerns about debt sustainability and strategic dependencies.
  • Strategic Alignment: While India emphasizes developmental assistance and strategic partnerships focused on security and governance, China’s engagements often prioritize infrastructure development and economic cooperation, reflecting different strategic priorities.
  • Regional Stability: Both India and China play pivotal roles in ensuring stability and security in the Indian Ocean region. Their respective approaches influence regional dynamics and perceptions among neighbouring countries regarding economic partnerships and security alignments.

India’s stand

  • Balanced Approach: India continues to engage with the Maldives despite geopolitical shifts and maintains a stance of constructive diplomacy, offering economic support and emphasizing mutual respect.
  • Long-term Engagement: Inviting President Muizzu to Prime Minister Modi’s swearing-in signals India’s commitment to long-term bilateral relations and stability in the Indian Ocean region.
  • Strategic Importance: India views the Maldives as crucial for maritime security and regional stability, underpinning its continued diplomatic efforts and economic assistance.

Conclusion: India can increase its economic assistance to the Maldives through grants, concessional loans, and capacity-building initiatives aimed at improving fiscal management and revenue generation capabilities. And focus on projects that enhance infrastructure resilience, promote sustainable development, and support economic diversification efforts beyond traditional sectors.

Mains PYQ:

Q Discuss the political developments in Maldives in the last two years. Should they be of any cause of concern to India? (UPSC IAS/2013) 

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Foreign Policy Watch: India-Maldives

Maldives-China Relations: History, Changing Dynamics in the Present

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: China-Maldives Relations

Introduction

  • Nestled in the vast expanse of the Indian Ocean, the Maldives, with its modest landmass and population, may seem unassuming at first glance.
  • However, this archipelago has become a focal point in the geopolitical landscape, drawing attention from global powers like India, China, and the United States.
  • To understand its current significance, it is crucial to delve into the historical and contemporary dynamics that have shaped the Maldives’ role in the Indian Ocean region.

British Empire’s Legacy

  • Strategic Role for the British Empire: The Maldives played a significant role for the British Empire in the late nineteenth century, aiding in the expansion of commercial and military influence in the Indian Ocean and beyond.
  • Preeminent Power: Before becoming a modern political flashpoint, the Maldives served as a crucial outpost for the British Empire.

China-Maldives Ties: A Historical Perspective

  • Ancient Connections: China maintains that its relationship with the Maldives dates back centuries, including interactions during the Tang dynasty (7th century AD) and along the ancient Silk Road.
  • Ming Dynasty Navigator: The famous Chinese navigator, Zheng He, visited the Maldives in the early 15th century, leaving historical traces of this connection.
  • Contemporary Diplomacy: Diplomatic relations between the People’s Republic of China and the Maldives were officially established in 1972, with economic and trade ties initiated in 1981.

Xi Jinping Era

  • Xi’s Visit: In 2014, under President Xi Jinping’s leadership, China and the Maldives solidified their relationship, with Xi becoming the first Chinese head of state to visit the Maldives.
  • Belt & Road Initiative (BRI): The Maldives was among the first South Asian nations to join the One Belt, One Road initiative, now known as the Belt & Road Initiative (BRI).
  • President Muizzu’s Visit: President Mohamed Muizzu’s visit to China after taking office marked a milestone. It was seen as a “new beginning” and a departure from previous Maldivian leaders’ foreign policy choices.

China’s Growing Role and India’s Concerns

  • China’s Expanding Economic Cooperation: China’s economic cooperation with the Maldives has been on the rise, causing unease in India.
  • India’s Concerns: India’s “hegemonic neighborhood first” policy has led to concerns about Beijing’s growing influence in South Asia.
  • Geopolitical Tensions: The India-China rivalry and China’s increasing presence in the Indian Ocean have put the Maldives in the spotlight.
  • US Engagement: The United States, recognizing the Maldives’ geostrategic significance, has intensified its engagement with the archipelago, opening its embassy in 2020.

China’s Perception of India’s Reaction

  • Bilateral Relations Upgrade: During President Muizzu’s visit, China upgraded its bilateral relationship with the Maldives from a “comprehensive friendly cooperative partnership” to a “comprehensive strategic cooperative partnership.”
  • Maritime Calculations: Observers acknowledge that China’s maritime interests play a significant role in this diplomatic shift.
  • Indian Annoyance: China candidly commented on India’s perceived annoyance with the Maldives’ growing ties with China, suggesting a lack of confidence in India’s bilateral relationship with the Maldives.

Conclusion

  • The Maldives’ strategic location in the Indian Ocean has thrust it into the spotlight of global power struggles.
  • As India, China, and the United States vie for influence in this crucial region, the Maldives finds itself at the intersection of geopolitical ambitions.
  • Whether this triangular tug of war will reshape historical and strategic equations or lead to a delicate balance remains uncertain, but the Maldives’ significance on the world stage is undeniable.

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Foreign Policy Watch: India-Maldives

India doesn’t need wolf warriors

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Lakshadweep

Mains level: Neighbourhood First Policy

Maldives asks India to withdraw its military presence from island nation  amid diplomatic row - India Today

Central Idea:

The article delves into recent diplomatic tensions between India and the Maldives, triggered by social media campaigns and statements from Maldivian officials. It emphasizes the challenges India faces in maintaining regional relationships amid a shifting dynamic in the Maldives towards a pro-China stance.

Key Highlights:

  • Social Media Campaign: Post-Prime Minister Modi’s visit to Lakshadweep, a social media campaign to boycott the Maldives emerged, leading to negative reactions from some Maldivian officials.
  • Pro-China Shift: President Muizzu’s visit to China and his pro-China stand mark a significant departure from his predecessor’s policies. He seeks closer ties with China and challenges existing Indian influence in the region.
  • Diplomatic Fallout: Maldivian officials’ comments on India and Modi resulted in their suspension, with the Maldives clarifying that their views did not represent the government’s official stance.
  • India’s Regional Importance: India’s relationship with the Maldives is crucial due to geographical proximity, shared maritime interests, and historical ties. The Maldives has traditionally supported India in international forums.
  • India’s Foreign Policy Challenges: The article points out India’s diplomatic challenges, citing instances such as its stance on Russia’s invasion of Ukraine and its handling of the Israel-Hamas conflict, impacting its global standing.

Key Challenges:

  • Shifting Alliances: The Maldives’ pivot towards China challenges India’s influence in the region, posing a diplomatic challenge and potential geopolitical consequences.
  • Domestic Sentiments: The article highlights the impact of populist rhetoric and social media campaigns on India’s foreign policy, especially in dealing with smaller neighbors.
  • Global Perception: India faces a challenge in projecting a harmonious image that aligns with both its national interests and the interests of its neighbors, as opposed to adopting a more confrontational approach seen in social media reactions.

Key Phrases:

  • China’s wolf-warrior diplomacy:  An assertive and combative approach to foreign relations characterized by aggressive rhetoric and actions, aimed at defending China’s interests and countering perceived challenges or criticisms from the international community.
  • Neighbourhood First Policy: Refers to India’s approach emphasizing prioritizing relationships with its neighboring countries.

Key Quotes:

  • “His election campaign in 2023 also contained anti-India rhetoric: he promised to remove Indian troops from the Maldives and balance trade relations, which he claimed were heavily tilted in India’s favour.”
  • “India has to make those hard choices and it must make them now.”

Key Examples and References:

  • Maldivian President’s Visit to China: President Muizzu’s pro-China stance and the elevation of bilateral ties with China.
  • India’s G20 Summit Theme: The use of the theme ‘One Earth, One Family, One Future’ during the G20 summit.

Key Facts and Data:

  • Maldivian President’s Request: President Muizzu’s request for India to remove its military personnel from the Maldives by March 15.
  • China-Maldives Comprehensive Strategic Cooperative Partnership: An agreement indicating deepening ties between China and the Maldives.

Critical Analysis:

The article critically examines India’s foreign policy challenges, emphasizing the need for a balanced approach and the potential repercussions of adopting a confrontational stance, drawing parallels with China’s diplomacy.

Way Forward:

The article suggests that India needs to navigate its foreign policy with a globalist perspective, taking into account the complexities of regional relationships, avoiding populist rhetoric, and making strategic decisions that align with its long-term interests.

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Foreign Policy Watch: India-Maldives

Why are Indian soldiers in Maldives?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UTF Harbour Project

Mains level: Read the attached story

maldives

Introduction

  • With President Muizzu’s administration insisting on the withdrawal of Indian troops, a high-level core group has been set up to negotiate this process.
  • This situation raises questions about the reasons behind the presence of Indian troops and the factors fueling the ‘India Out’ campaign.

Overview of the Current Situation

  • Official Statement: Maldives affirmed the policy of President Muizzu’s administration to remove Indian military personnel from the Maldives.
  • Negotiation Group: A core group, including Indian High Commissioner, met in Male to discuss the troop withdrawal, though the Indian government has not yet commented on these reports.

Indian Military Presence in the Maldives

  • Troop Numbers: Contrary to the rhetoric of the ‘India Out’ campaign, only 88 Indian military personnel are stationed in the Maldives, primarily for training purposes.
  • Historical Context: Indian soldiers have been sent to the Maldives for training in combat, reconnaissance, and rescue-aid operations. The only time Indian troops were involved in active military operations was during the 1988 coup attempt, at the request of then-President Maumoon Abdul Gayoom.

Factors behind the ‘India Out’ Campaign

  • Controversy over Helicopters: The gifting of two Dhruv Advanced Light Helicopters by India, used for humanitarian purposes, became a point of contention, portrayed as a military presence by certain political factions.
  • Perceived Lack of Transparency: The Solih government’s alleged opacity in dealings with India fueled suspicions.
  • Maritime Security Dependence: The Maldives relies on India for maritime security, collaborating to counter common threats.
  • Police Academy Speculations: The construction of a new police academy with Indian assistance led to rumours about its purpose and scale.
  • UTF Harbour Project Agreement: Speculations about the UTF (Uthuru Thila Falhu- Island) project being turned into an Indian naval base, despite official clarifications to the contrary.

Conclusion

  • The insistence on the withdrawal of Indian troops from the Maldives and the ensuing ‘India Out’ campaign reflect a complex interplay of historical, political, and security factors.
  • While the Indian military presence has been primarily for training and humanitarian assistance, various internal and external elements have contributed to the current sentiment.
  • Understanding these nuances is crucial for comprehending the evolving relationship between India and the Maldives and the broader geopolitical implications in the region.

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Foreign Policy Watch: India-Maldives

Social Media row between India and Maldives over Tourism

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Souring of India-Maldives ties

maldives

Introduction

  • Trigger: PM Modi’s social media posts promoting tourism in Lakshadweep led to a contentious exchange between Maldivian politicians, government officials, and Indian social media users.
  • Context: The posts highlighted Lakshadweep’s beauty but did not mention the Maldives or other island nations.
  • Maldivian Reaction: Following PM Modi’s posts, some Maldivian social media users, including government officials, responded with offensive and derogatory comments targeting Indians and the Prime Minister.

Escalation of the Issue

  • Sensational Headlines: Local Maldivian news websites sensationalized the issue, falsely claiming that India was campaigning against Maldivian tourism.
  • Government Officials’ Involvement: High-ranking Maldivian officials engaged in the social media dispute, exacerbating the situation.

Maldivian Social Media Campaign

  • #VisitMaldives Hashtag: In response to India’s promotion of Lakshadweep, Maldivian officials and supporters pushed the ‘#VisitMaldives’ hashtag, featuring local resorts and beaches.
  • Territorial Claims: Some Maldivian users falsely claimed that Lakshadweep is not Indian territory but belongs to the Maldives.

Accusations Against India

  • Alleged Competition: Maldivian social media users accused India of trying to compete with the Maldives as a tropical vacation destination.
  • Racist Remarks: The posts led to a range of racist comments against Indians and Indian tourists.

Maldives’ Dependency on Tourism

  • Significant Indian Tourist Numbers: Indians form a large group of tourists visiting the Maldives, with over 200,000 travelers in 2023.
  • Economic Impact: Tourism is crucial for the Maldives, accounting for over 28% of its GDP.

Indian Response

  • Boycott Calls: Some Indian users called for a boycott of Maldivian hotels and resorts.
  • Highlighting Bilateral Cooperation: Others emphasized India’s assistance to the Maldives and aspects of bilateral cooperation.
  • Celebrity Support: Bollywood celebrities and Indian sportspersons initiated a ‘Visit Lakshadweep’ campaign in response to the controversy.

Roots of Anti-India Sentiments

  • Historical Campaign: Anti-India sentiments have been present since the ‘India Out’ campaign, which started in 2020 and was promoted by former president Abdulla Yameen Abdul Gayyoom.
  • Muizzu Government’s Stance: The current Maldivian government, under President Mohamed Muizzu, has been fulfilling campaign promises, including withdrawing Indian military personnel from the Maldives.

Criticism Within the Maldives

  • Opposition’s Stance: Not all in the Maldives support the government’s stance, with some politicians and diplomats criticizing the derogatory comments.
  • Lack of Diplomatic Experience: Critics argue that some government officials lack experience and understanding of diplomacy.

Maldivian Government’s Reaction

  • Official Statement: The Maldives’ Ministry of Foreign Affairs issued a statement distancing the government from the derogatory remarks.
  • Cyber Attack Suspicions: Following the incident, several Maldivian government websites, including the foreign ministry, were suspected to be under cyber-attack.

Conclusion

  • Surprise and Disappointment: The incident has surprised many in India and the Maldives, given the history of diplomatic support and cooperation.
  • Unlikely to Affect Relations: Analysts believe the conduct of a few individuals is unlikely to impact broader India-Maldives bilateral relations.
  • Need for Diplomatic Sensitivity: The episode underscores the importance of maintaining respectful and diplomatic communication between neighboring countries.

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Foreign Policy Watch: India-Maldives

Private: Unravelling the shift in India-Maldives Relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Read the attached story

maldives

Introduction

  • The Maldives, a nation known for its oceanic beauty, has recently been making headlines for political reasons.
  • The core of these developments is the strained diplomatic relations with India, following undiplomatic remarks by members of Muizzu’s cabinet against Indian PM and Indians in general.
  • This situation has led to significant changes in the Maldives’ foreign policy and its relationship with regional powers, particularly India and China.

Recent Diplomatic Fallout

  • Incident Trigger: The diplomatic strain was triggered by disparaging remarks from Maldivian ministers against PM Narendra Modi and Indians.
  • Maldives’ Response: The Maldivian government responded by dismissing the three ministers involved.
  • Reaction in India: There has been a growing call in India to boycott the Maldives as a tourist destination and support Lakshadweep tourism instead.

Key Questions in the Maldives-India Relationship

[A] Decadal Ties

  • The diplomatic and political relationship, built over six decades, is at risk.
  • India’s historical ties with the Maldives date back to 1965, post-British control, with deep relationships across various sectors.

[B] Why does India need the Maldives?

  • Strategic Location: The Maldives’ proximity to India’s west coast and its position in key sea-lanes makes it strategically important for maritime security.
  • Defence Training: India has been a significant contributor to the Maldives’ defence training, with efforts to enhance maritime strength.
  • China’s Influence: The growing Chinese presence in the Maldives, especially under President Xi Jinping’s Belt and Road Initiative, is a concern for India.

[C] Why does the Maldives need India?

  • Daily Essentials: India is a crucial supplier of food, medicine, and construction materials to the Maldives.
  • Education: India is a primary education provider for Maldivian students.
  • Economic Dependence: India is among the Maldives’ top trading partners, with significant exports to the island nation.
  • Disaster Assistance: India has historically been the first responder to crises in the Maldives, including the 2004 tsunami and the 2014 water crisis.

Political Changes in the Maldives

  • Muizzu’s Rise to Power: Mohamed Muizzu, a former minister in Yameen’s government, won the presidential election with a campaign focusing on reducing Indian influence.
  • Foreign Policy Shifts: President Muizzu’s first official visit was to Turkiye, breaking the tradition of visiting India first, and he has since visited China, signaling a pivot in foreign relations.
  • Military Presence and Agreements: The Muizzu administration has requested the withdrawal of Indian military personnel and revoked a key agreement with India for conducting hydrographic surveys in Maldivian waters.

Recent Developments and Tensions

  • Military Presence: Muizzu’s insistence on the withdrawal of Indian military personnel has been a point of contention.
  • Defence Ties: The absence of a Maldivian representative at the Colombo Security Conclave and the revocation of a key water survey pact with India signal a cooling of defence relations.
  • China’s Role: The Muizzu administration’s decisions appear to align with a closer relationship with Beijing, potentially aiding China’s marine surveys in the region.

Conclusion

  • The recent political developments in the Maldives under President Mohamed Muizzu mark a significant shift in the island nation’s foreign policy, particularly in its relations with India.
  • These changes, influenced by domestic politics and the growing influence of China, have implications for regional security and diplomacy.
  • As the situation evolves, it remains to be seen how these shifts will impact the Maldives’ international relations and its role in the strategic Indian Ocean region.

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Foreign Policy Watch: India-Maldives

Maldives decides to end Hydrographic Survey Pact with India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Hydrographic Survey Pact

Mains level: Read the attached story

Hydrographic Survey

Central Idea

  • The Maldives government has chosen not to renew a hydrographic survey agreement with India, marking a significant change in bilateral relations.

Hydrographic Survey Pact: A Backgrounder

  • Nature of Hydrographic Surveys: These surveys involve mapping water bodies to facilitate safe and efficient maritime transportation.
  • 2019 Agreement: During Prime Minister Modi’s state visit to the Maldives in June 2019, an MoU was signed for cooperation in hydrography between the Indian Navy and the Maldives National Defence Force (MNDF).

Activities under the Pact

  • Joint Hydrographic Surveys: Three joint surveys were conducted in 2021, 2022, and 2023, involving Indian Naval Ships like INS Darshak and INS Sutlej.
  • Survey Objectives: The surveys aimed to update navigational charts and support sectors like tourism and fisheries. They also involved tidal observations and identifying new shoals.
  • Support to MNDF: India provided hydrographic equipment and training to MNDF personnel, aligning with its policy of supporting the Maldives in establishing hydrographic capabilities.

India’s Hydrographic Survey Agreements with Other Countries

  • Global Hydrographic Efforts: India has conducted hydrographic surveys in various countries, including Sri Lanka, Myanmar, and Bangladesh.
  • International Cooperation: The National Hydrographic Office highlights the potential for international cooperation in hydrography, especially in regions with limited capabilities.

Reasons behind Maldives’ Decision   

  • Regime Change: The election of Mohamed Muizzu of the Progressive Party of Maldives (PPM), seen as more pro-China, contrasts with his predecessor President Solih’s India-friendly stance.
  • Geopolitical Dynamics: China’s increasing influence in the Indian Ocean region, particularly through the Belt and Road Initiative (BRI), has impacted India’s traditional sphere of influence in the Maldives.
  • ‘India Out’ Campaign: Allegations of Indian military presence and the new administration’s emphasis on national security and self-reliance in hydrographic capabilities have influenced this decision.

Possible outcomes

  • Changing Geopolitical Landscape: The Maldives’ decision reflects the shifting geopolitical dynamics in the Indian Ocean, with growing Chinese influence challenging India’s traditional role.
  • Impact on India-Maldives Relations: This development could signify a recalibration of the Maldives’ foreign policy, potentially impacting India’s strategic interests in the region.

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Foreign Policy Watch: India-Maldives

India and Maldives ties

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Key facts

Mains level: India and Maldives ties, challenges, recent developments and future prospect

What’s the news?

  • Recent changes in the Maldives’ leadership have raised questions about the future of its relationship with India.

Central idea

  • While leadership changes may bring some alterations, the fundamental ties between the two nations remain intact. From the era of Maumoon Abdul Gayoom to the present day, India and the Maldives have maintained a close and friendly relationship, with occasional challenges. Therefore, it’s essential not to rush to judgment regarding the current situation.

Background

  • Historical Ties: The relationship between India and the Maldives is deep-rooted. From Maumoon Abdul Gayoom’s leadership until today, both nations have maintained a close bond, despite occasional hiccups.
  • Geographical Proximity: The Maldives spans 90,000 sq km, mostly covered by the sea, with the remaining land spread across 1,200 islands. Situated just 70 nautical miles away, India has always been the Maldives’ closest ally. As Ibn Khaldun stated, geography is destiny.

Challenges in the Maldives

“Maldives, despite its 98% literacy rate, faces various contradictions that pose challenges to democratic governance.”

  • Constitutional Restrictions: The Maldivian constitution bars anyone who isn’t a Sunni Muslim from becoming a citizen. This can be seen as restrictive and exclusive, which may not align with broader principles of democratic governance.
  • Nascent Civil Society: The civil society in the Maldives is still emerging. This means the public structures and mechanisms that can hold the government accountable and ensure the active participation of citizens in the governance process might be underdeveloped.
  • Drug Abuse: The Maldives has been grappling with an increasing problem of drug abuse, which poses social and health-related challenges.
  • Distorted Labor Market: This implies there might be imbalances in employment opportunities, perhaps with certain sectors having too many workers and others having too few, or challenges related to wages and workers’ rights.
  • Growing Inequality: Despite its successes in areas like tourism, the Maldives faces growing economic disparities among its population.
  • Foreign Influence and Debt: China’s policy of extending debt and subsequently interfering in the internal politics of the Maldives, as well as supporting conservative elements, poses challenges. This not only can lead to a debt crisis but also threatens the democratic progression of the country.
  • Legacy of Controlled Regime: The influence of the Gayoom years and the alignment with China by certain elements for narrow gains might not serve the broader interests of the Maldivian nation in the long term.

India’s Role

  • Historically: From Buddhism’s prevalence in the Maldives to its dependence on India during the British protectorate era (1887–1965), India has always played an influential role.
  • Economically: The State Bank of India has been instrumental in boosting the Maldives’ tourism economy and remains the largest bank there.
  • Assistance: Whether during the 1988 coup, the 2004 tsunami, or the 2014 water crisis, India has always been the first to assist. India also supplies essential items in bulk and contributes significantly to the Maldivian education and health sectors.
  • Defence and Security: India has been a robust defense partner, conducting joint exercises and providing security assistance.

India’s Concerns Regarding the Maldives

  • China’s Growing Influence: China’s increasing role in the Maldives is driven by debt financing. This kind of influence, particularly through debt traps, could lead to the consequent hegemony of China in the region, which is a matter of concern for India given the strategic importance of the Indian Ocean Region.
  • Internal Interference by External Powers: China’s policy of interfering in the internal politics of the Maldives, especially its support for conservative elements, is worrisome for India. This could hinder the development of a robust democracy in the Maldives and potentially impact the bilateral relationship between India and the Maldives.
  • Economic Interests: With projects like greater Male connectivity and being a major supplier of essential goods to the Maldives, India has vested economic interests. Any disruption or potential shift in trade relations can impact India’s economic engagement.
  • Security and Defense Cooperation: The defense cooperation isn’t just about tangible assets like helicopters but extends to joint exercises, training, and disaster management. Any shift in Maldivian policies that affects this cooperation can be concerning.
  • Legacy of Assistance: India’s role as a primary responder to Maldivian crises and its consistent support over the years hold significance. India would be concerned if such efforts and goodwill aren’t recognized or are undermined by external influences.

Recent developments in the Maldives

  • President Designate Mohamed Muizzu: Mohamed Muizzu, described as a Western-educated engineer, is expected to take over the reins of leadership. His past roles and his education may influence the Maldives’ direction, both domestically and in terms of foreign relations.
  • Former President Yameen’s Situation: Yameen’s shift from jail to house arrest indicates changing political dynamics within the Maldives. Given that Yameen’s tenure was marked by a pro-China policy, any change related to his influence might hint at a shift in foreign policy alignment.

Conclusion

  • India’s unwavering commitment has significantly shaped the Maldives, and any impulsive decisions could be detrimental for the latter. Given the deep historical ties and mutual interests, it’s crucial for the new leadership to recognize and value the long-standing bond. As history has often shown, taking relationships for granted can have grave consequences.

Also read:

The Maldives, the evolution of a democracy

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Foreign Policy Watch: India-Maldives

The Maldives, the evolution of a democracy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Recent developments involving India

Mains level: India's approach in the evolving Maldivian political landscape

What’s the news?

  • The recent presidential election in the Maldives has demonstrated the vitality of democracy in South Asia’s smallest nation-state.

Central idea

  • The Maldives’ recent fair and free election, which enhanced its international standing, underscores the importance of a nuanced understanding of its politics rather than portraying it as a China vs. India contest. Voter concerns, especially among the youth, are primarily centered on economic well-being.

Transition of Power in the Maldives and India vs. China

  • Maumoon Abdul Gayoom’s Era (1978–2008): For three decades, Maumoon Abdul Gayoom ruled as the President, maintaining a one-party system. This period marked a lack of political pluralism and democracy in the Maldives.
  • Emergence of Multiparty Democracy (Late 2000s): The Maldives began to transition towards a multiparty democracy under a new constitution, signaling a shift away from Gayoom’s authoritarian rule.
  • Mohamed Nasheed’s Presidency (2008–2012): Mohamed Nasheed, a charismatic leader, became the first directly elected President of the Maldives. However, his presidency was short-lived, as he did not complete his full five-year term.
  • Shared Presidency (2012–2013): Mohamed Nasheed’s resignation led to a period of political uncertainty. Mohamed Waheed Hassan assumed the presidency during this transitional phase.
  • Abdulla Yameen’s Presidency (2013–2018): Abdulla Yameen became president and was notably the most pro-China president during his tenure. His presidency marked a shift in the Maldives’ foreign policy towards China.
  • Ibrahim Mohamed Solih’s Presidency (2018–2023): Ibrahim Mohamed Solih, representing the Maldivian Democratic Party (MDP), assumed the presidency and adopted an ‘India First’ policy, emphasizing strong ties with India.
  • Transition to Mohamed Muizzu (Upcoming): Following Ibrahim Mohamed Solih’s defeat, the presidency is set to transition to Mohamed Muizzu, the opposition candidate backed by an alliance of political parties. Muizzu, who currently serves as the mayor of the capital city, Male, will be sworn in as the new president.

Challenges Faced by Ibrahim Mohamed Solih

  • Historical Incumbent Disadvantage: The Maldives has a history of not re-electing incumbent presidents, posing a significant challenge to Solih’s re-election.
  • Intraparty Conflict: Internal divisions within the ruling MDP, exacerbated by Mohamed Nasheed’s departure, weakened party cohesion and campaign effectiveness.
  • Disinformation Campaign: The opposition alliance launched a disinformation campaign exploiting MDP’s internal divisions and injecting unnecessary geopolitical issues into the election discourse.
  • Loss of Nasheed’s Influence: Mohamed Nasheed’s departure deprived the MDP of his charismatic leadership and effective communication skills, further straining party unity.

The Path Ahead for the Maldives

  • Leadership Dynamics: Watch for the evolving relationship between President-elect Muizzu and former President Yameen, a key figure in the new administration.
  • Transition to Presidential Role: Expect Mayor Muizzu to shift from his mayoral role to acting as president, focusing on domestic development and regional responsibilities.
  • Domestic Priorities: Muizzu is likely to prioritize issues like employment, housing, and education for Maldivian citizens while leveraging foreign policy for national interests.
  • Foreign Policy Options: The new administration faces choices in foreign policy: revert to ‘India Out,’ continue ‘India First,’ or adopt a balanced approach involving India and China.
  • Changing Global Landscape: Consider the impact of challenges to China’s Belt and Road Initiative, the Sri Lankan financial crisis requiring India’s help, and shifts in India-Gulf State relations on the Maldives’ stance.
  • Islamist Constituency: Monitor the attitude of the Maldives’ Islamist constituency, which historically had complex relations with India, in response to changing regional dynamics.
  • Reduced Interest in Pakistan: Observe how diminishing interest in Pakistan in West Asia may affect the Maldives’ security and its handling of extremism-related challenges.

Recommendations for India’s approach in the evolving Maldivian political landscape

  • Positive Public Sentiment: India enjoys a positive image among the Maldivian people, thanks to extensive development work and community projects. This sentiment can be leveraged for stronger bilateral relations.
  • Engagement with Youth: Thousands of Maldivian youth have benefited from training and capacity-building programs in India. Continued engagement with youth is vital for fostering long-term ties.
  • Diverse Engagement: India plays a significant role in the Maldives, including in tourism, trade, and investment. This multifaceted engagement should be nurtured and expanded.
  • Strengthening Regional Initiatives: New Delhi should focus on strengthening regional initiatives, such as the Colombo Security Conclave, with tangible outcomes in maritime security and the development of the Blue Economy.
  • BIMSTEC Involvement: India should consider reimagining regional cooperation by inviting the Maldives as an observer in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) at its next summit. This could enhance regional collaboration.
  • Resource Allocation: There is a need for additional resources to support India’s strategic community and media organizations in taking a more active interest in the Maldives. Building bridges of mutual understanding and trust is essential.

Conclusion

  • The Maldives’ recent presidential election underscores the resilience of democracy and the evolving political landscape in South Asia. As the nation embarks on a new chapter, prudent diplomacy and strategic engagement will be essential for the Maldives and its regional partners, including India, to navigate the challenges and opportunities on the horizon.

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Foreign Policy Watch: India-Maldives

Maldives Presidential Elections: Geopolitical Implications

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Maldives Presidential Elections

maldives

Central Idea

  • The Maldives’ presidential election run-off is set to “safeguard the country’s independence and sovereignty” amidst strong ties with India.
  • In addition to the presidential election, Maldivians will vote in a referendum next month to decide whether to switch to a parliamentary system of governance.

Key Points and Geopolitical Significance

[A] Electoral System

  • French-Style System: The Maldivian electoral system resembles France’s, requiring a candidate to secure over 50% of votes for victory. A runoff occurs if no candidate surpasses this threshold in the first round, with the top two candidates competing.

[B] History of Maldivian Presidency

  • Executive Presidency: The Maldives adopted the Executive Presidency in 1968. Initially, it operated as a single-party system until 2008 when political reforms led to a multi-party system.
  • Abdul Gayoom’s Era: Maumoon Abdul Gayoom served as President for 30 years, from 1978 to 2008, during which he faced political protests and thwarted a coup attempt with India’s assistance in 1988.
  • Political Reforms: In 2004, Gayoom initiated political reforms, leading to the registration of political parties in 2005 and the adoption of a new Constitution in 2008, enabling presidential elections every five years.

India’s Relations with Maldives

  • Mixed Relations: India’s engagement with Maldivian politics has seen fluctuations. President Solih’s government has had the most favourable relations with India thus far.
  • Gayoom and Nasheed Eras: India closely worked with Abdul Gayoom for three decades. When Nasheed assumed power in 2008, India supported his government initially. However, Nasheed later leaned toward China, cancelling a major infrastructure project with India in 2012.
  • Yameen’s Pro-China Stance: Abdulla Yameen, who took office in 2013, pursued a pro-China foreign policy, including joining China’s Belt and Road Initiative. India’s reluctance to provide loans due to human rights concerns led Yameen to turn to Beijing.
  • Solih’s Election: President Solih’s victory in the 2018 elections was a relief for India, signifying a shift in bilateral relations. PM Modi attended Solih’s swearing-in ceremony.
  • Stronger Ties: India provided rapid assistance, including vaccines, during the COVID-19 pandemic, further strengthening relations. Bilateral projects in Maldives have multiplied, and defense cooperation has expanded, with India training Maldivian security personnel and providing military equipment.

Current Election Landscape

  • Solih’s Challengers: President Solih is facing competition from Opposition candidate Mohamed Muizzu, who emerged as the consensus candidate after former President Abdulla Yameen’s disqualification.
  • Proxy for Yameen: Muizzu is seen as a proxy for Yameen and has made statements raising concerns for India. He has threatened to terminate agreements with foreign countries and withdraw Indian troops stationed in the Maldives.
  • Low Turnout: The election has seen a lower voter turnout compared to previous ones, with 79% participation in the first round. This low turnout is a concern in the context of Maldives’ democratic transition.

Geopolitical Ramifications

  • China’s Influence: Under President Abdulla Yameen’s rule from 2013 to 2017, the Maldives aligned with China, participating in the Belt and Road Initiative (i.e. String of Pearls) and receiving substantial loans, including funding for major infrastructure projects.
  • India’s Concern: India has a keen interest in maintaining influence in its “backyard” in the Indian Ocean and keeping Chinese influence at bay. India has invested heavily in Maldivian infrastructure and deepened security cooperation, which has raised concerns of establishing a strategic military presence.
  • Western Nations’ Watchful Eye: Western nations, including the US, UK, and Australia, are closely monitoring the election as part of their efforts to counter Chinese influence in the Indo-Pacific region. The opening of embassies by these countries in the Maldives underscores its strategic significance.

Conclusion

  • Geopolitical Implications: The Maldivian presidential runoff and the country’s relationship with India and China hold significant geopolitical implications. The outcome will shape the nation’s foreign policy direction.
  • India’s Interests: India’s interests in Maldives include defense cooperation, economic partnerships, and maintaining regional stability. The election’s result will be closely monitored to assess its impact on these interests and the future trajectory of Maldives’ foreign relations.

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Foreign Policy Watch: India-Maldives

UTF (Uthuru Thila Falhu- Island) Harbour Project

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UTF Project

Mains level: India- Maldives Relations

utf

Central Idea: The article discusses the recent commissioning of the Indian grant-in-aid UTF (Uthuru Thila Falhu- Island) Harbour Project, the coastal surveillance radar system, in the Maldives. The project is a significant milestone in the growing defence ties between the two countries.

What is the UTF Project?

  • The UTF project was announced during External Affairs Minister S Jaishankar’s visit in February 2021.
  • It is among the biggest Indian grant-in-aid projects in the Maldives.
  • It is aimed at developing a maintenance and repair hub for naval vessels and will help the Maldives become self-sufficient.

Importance of the Project

  • The project marked a major step in growing defence cooperation between India and Maldives.
  • The facility will strengthen the capability of the Maldivian Coast Guard and facilitate regional humanitarian assistance and disaster relief efforts.

Controversy Surrounding the Project

  • There were allegations that the project was a cover for Indian military presence in the Maldives.
  • An “India Out” campaign was launched in the island nation backed by its opposition leader Abdulla Yameen.
  • Maldives President Ibrahim Solih banned anti-India protests as a threat to national security.

Defence Cooperation and Other Projects

  • India has gifted a Dornier aircraft and a patrol vessel to the Maldives in the past.
  • India has provided 24 vehicles and a naval boat and will build police facilities on 61 islands in the country.
  • The joint statement released by India and Maldives after Defence Minister’s visit highlighted ongoing defence cooperation between the two neighbours.
  • The countries have agreed to explore additional avenues for cooperation, including in areas of defence trade, capacity building, and joint exercises.
  • Both the countries are working closely to address challenges, including those on maritime security, terrorism, radicalisation, piracy, trafficking, organised crime, and natural disasters.
  • India has financed the Greater Male Connectivity Project (GMCP), a $500 million project, to build a 6.74 km bridge and causeway linking the capital of Maldives, Male, with neighboring islands.

India-Maldives Relations: A backgrounder

  • India and Maldives are neighbors sharing a maritime border.
  • Both nations established diplomatic relations after the independence of Maldives from British rule in 1966.
  • India was one of the first nations to recognize Maldives’ independence.
  • Since then, India and Maldives have developed close strategic, military, economic and cultural relations.
  • Maldivians generally regard Indians and India as a friend and trusted neighbor in the field economic, social and political.

Causes for the anti-India sentiments

  • Political instability: The anti-India sentiment is nearly a decade old and can be traced back to when Abdulla Gayoom became president in 2013. He used anti-India sentiments for his political mobilization and started tilting China.
  • Controversy over helicopter gift: Two Dhruv Advanced Light Helicopters (ALF) that were given by India to the Maldives for ocean search-and-rescue operations. Opposition tried to portray this as military presence in the country.
  • Confidential agreements: Most agreements being signed between the Ibrahim Solih government and India are backdoor and has not been publicly discussed in the Maldives Parliament.
  • Alleged interference in domestic politics: India being a big neighbour, there are unsubstantiated perceptions & allegations on Indian Diplomats stationed in Maldives interfering in Domestic affairs.

Restoration of ties

Ibrahim Mohamed Solih who became President in 2018 has restored Maldives close ties with India.

Major irritants in ties

  • Political Instability: India’s major concern has been the impact of political instability in the neighborhood on its security and development.
  • Increasing radicalization: In the past decade or so, the number of Maldivians drawn towards terrorist groups like the Islamic State (IS) and Pakistan-based jihadist groups has been increasing.
  • Inclination towards terror: Radicalism in the island nation has increased the possibility of Pakistan based terror groups using remote Maldivian islands as a launch pad for terror attacks against India and Indian interests.
  • Chinese affinity: China’s strategic footprint in India’s neighborhood has increased. The Maldives has emerged as an important ‘pearl’ in China’s “String of Pearls” construct in South Asia.

Recent gestures by India

[1] 2014 Male drinking-water crisis

  • In the wake of a drinking water crisis in Malé in December 2014, following collapse of the island’s only water treatment plant, Maldives urged India for immediate help.
  • India came to rescue by sending its heavy lift transporters like C-17 Globemaster III, Il-76 carrying bottled water.

[2] 2020 Covid-19 crisis

  • During the COVID-19 crisis of 2020, India extended help to Maldives in the form of financial, material and logistical support.
  • Also, the IAF airlifted 6.2 tonnes of essential medicines and hospital consumables to Maldives, as part of ‘Operation Sanjeevani’.

[3] Greater Male Connectivity Project

  • India has recently announced the signing of a $500-million infrastructure project for the construction of the Greater Malé Connectivity Project (GMCP).
  • This infrastructure project, the largest-ever by India in the Maldives, involves the construction of a 6.74-km-long bridge and causeway link.

Maldives’ significance for India

  • Increasing maritime cooperation: As maritime economic activity in the Indian Ocean has risen dramatically in recent decades, the geopolitical competition too in the Indian Ocean has intensified.
  • Toll Gate in Indian Ocean: It is situated at the hub of commercial sea-lanes running through the Indian Ocean. More than 97% of India’s international trade by volume and 75% by value passes through the region.
  • Naval cooperation: Maldives is an important partner in India’s role as the net security provider in the Indian Ocean Region.
  • Important SAARC member: Besides, Maldives is a member of the South Asian Association for Regional Cooperation (SAARC) and the South Asia Subregional Economic Cooperation (SASEC).
  • People To People Contact: There is a significant population of Maldivian students in India. They are aided by a liberal visa-free regime extended by India. There is also medical tourism.
  • Major destination for Tourists: Tourism is the mainstay of the Maldivian economy. The country is now a major tourist destination for some Indians and a job destination for others.

Way forward

  • India continues to be an important partner of the Maldives.
  • India must not grow complacent over its position and must remain attentive to the developments in the Maldives.
  • India must play a key role within Indo-Pacific security space to ensure regional security in South Asia and surrounding maritime boundaries.
  • At present, the ‘India Out’ campaign has support from a limited population but this cannot be taken for granted by the Indian government.

 

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Foreign Policy Watch: India-Maldives

Maldives bans ‘India Out’ Campaign

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: India-Maldives relations

Maldivian President Ibrahim Mohamed Solih issued a decree banning the ‘India Out’ campaign, now led by former President Abdulla Yameen, terming it a “threat to national security”.

The India-Out Campaign

  • Maldivian protesters recently demanded the Solih administration to ‘stop selling national assets to foreigners’, implying India.
  • ‘India Out’ campaign in Maldives had started sometime last year as on-ground protests in the Maldives and later widely spread across social media platforms under the same hashtag.
  • It is not related to people-to-people conflict (Indian diaspora) but is discontent on close relationship between Maldivian government & India.

Causes for the anti-India sentiments

  • Political instability: The anti-India sentiment is nearly a decade old and can be traced back to when Abdulla Yameen Abdul Gayoom became president in 2013. He used anti-India sentiments for his political mobilization and started tilting China.
  • Controversy over helicopter gift: Two Dhruv Advanced Light Helicopters (ALF) that were given by India to the Maldives for ocean search-and-rescue operations. Opposition tried to portray this as military presence in the country.
  • Confidential agreements: Most agreements being signed between the Ibrahim Solih government and India are backdoor and has not been publicly discussed in the Maldives Parliament.
  • Alleged interference in domestic politics: India being a big neighbour, there are unsubstantiated perceptions & allegations on Indian Diplomats stationed in Maldives interfering in Domestic affairs.

Restoration of ties

  • Ibrahim Mohamed Solih who became President in 2018 has restored Maldives close ties with India.

India-Maldives Relations: A backgrounder

  • India and Maldives are neighbors sharing a maritime border.
  • Both nations established diplomatic relations after the independence of Maldives from British rule in 1966.
  • India was one of the first nations to recognize Maldives’ independence.
  • Since then, India and Maldives have developed close strategic, military, economic and cultural relations.
  • Maldivians generally regard Indians and India as a friend and trusted neighbor in the field economic, social and political.

Major irritants in ties

  • Political Instability: India’s major concern has been the impact of political instability in the neighborhood on its security and development.
  • Increasing radicalization: In the past decade or so, the number of Maldivians drawn towards terrorist groups like the Islamic State (IS) and Pakistan-based jihadist groups has been increasing.
  • Inclination towards terror: Radicalism in the island nation has increased the possibility of Pakistan-based terror groups using remote Maldivian islands as a launch pad for terror attacks against India and Indian interests.
  • Chinese affinity: China’s strategic footprint in India’s neighborhood has increased. The Maldives has emerged as an important ‘pearl’ in China’s “String of Pearls” construct in South Asia.

Recent gestures by India

[1] 2014 Malé drinking-water crisis

  • In the wake of a drinking water crisis in Malé in December 2014, following collapse of the island’s only water treatment plant, Maldives urged India for immediate help.
  • India came to rescue by sending its heavy lift transporters like C-17 Globemaster III, Il-76 carrying bottled water.

[2] 2020 Covid-19 crisis

  • During the COVID-19 crisis of 2020, India extended help to Maldives in the form of financial, material and logistical support.
  • Also, the IAF airlifted 6.2 tonnes of essential medicines and hospital consumables to Maldives, as part of ‘Operation Sanjeevani’.

[3] Greater Male Connectivity Project

  • India has recently announced the signing of a $500-million infrastructure project for the construction of the Greater Malé Connectivity Project (GMCP).
  • This infrastructure project, the largest-ever by India in the Maldives, involves the construction of a 6.74-km-long bridge and causeway link.

Why is Maldives significant for India?

  • Increasing maritime cooperation: As maritime economic activity in the Indian Ocean has risen dramatically in recent decades, the geopolitical competition too in the Indian Ocean has intensified.
  • Toll Gate in Indian Ocean: It is situated at the hub of commercial sea-lanes running through the Indian Ocean. More than 97% of India’s international trade by volume and 75% by value passes through the region.
  • Naval cooperation: Maldives is an important partner in India’s role as the net security provider in the Indian Ocean Region.
  • Important SAARC member: Besides, Maldives is a member of the South Asian Association for Regional Cooperation (SAARC) and the South Asia Subregional Economic Cooperation (SASEC).
  • People To People Contact: There is a significant population of Maldivian students in India. They are aided by a liberal visa-free regime extended by India. There is also medical tourism.
  • Major destination for Tourists: Tourism is the mainstay of the Maldivian economy. The country is now a major tourist destination for some Indians and a job destination for others.

Conclusion

  • There is a significant Indian diaspora in the Maldives. Innumerable Indians work across the hospitality, education, and health-care sectors of the Maldives economy.
  • India must use its Diaspora more extensively for strengthening its relations.

 

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Foreign Policy Watch: India-Maldives

India-Maldives Relations in recent times

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: India-Maldives relations

The Government of Maldives has said that it “strongly rejects attempts to spread false information” criticizing its ties with India, its “closest ally and trusted neighbor”.

The India-Out Campaign

  • Maldivian protesters recently demanded the Solih administration to ‘stop selling national assets to foreigners’, implying India.
  • ‘India Out’ campaign in Maldives had started sometime last year as on-ground protests in the Maldives and later widely spread across social media platforms under the same hashtag.
  • It is not related to people-to-people conflict (Indian diaspora) but is discontent on close relationship between Maldivian government & India.

Causes for the anti-India sentiments

  • Political instability: The anti-India sentiment is nearly a decade old and can be traced back to when Abdulla Yameen Abdul Gayoom became president in 2013. He used anti-India sentiments for his political mobilization and started tilting China.
  • Controversy over helicopter gift: Two Dhruv Advanced Light Helicopters (ALF) that were given by India to the Maldives for ocean search-and-rescue operations. Opposition tried to portray this as military presence in the country.
  • Confidential agreements: Most agreements being signed between the Ibrahim Solih government and India are backdoor and has not been publicly discussed in the Maldives Parliament.
  • Alleged interference in domestic politics: India being a big neighbour, there are unsubstantiated perceptions & allegations on Indian Diplomats stationed in Maldives interfering in Domestic affairs.

India-Maldives Relations: A backgrounder

  • India and Maldives are neighbors sharing a maritime border.
  • Both nations established diplomatic relations after the independence of Maldives from British rule in 1966.
  • India was one of the first nations to recognize Maldives’ independence.
  • Since then, India and Maldives have developed close strategic, military, economic and cultural relations.
  • Maldivians generally regard Indians and India as a friend and trusted neighbor in the field economic, social and political.

Restoration of ties

  • Ibrahim Mohamed Solih who became President in 2018 has restored Maldives close ties with India.

Major irritants in ties

  • Political Instability: India’s major concern has been the impact of political instability in the neighborhood on its security and development.
  • Increasing radicalization: In the past decade or so, the number of Maldivians drawn towards terrorist groups like the Islamic State (IS) and Pakistan-based jihadist groups has been increasing.
  • Inclination towards terror: Radicalism in the island nation has increased the possibility of Pakistan based terror groups using remote Maldivian islands as a launch pad for terror attacks against India and Indian interests.
  • Chinese affinity: China’s strategic footprint in India’s neighborhood has increased. The Maldives has emerged as an important ‘pearl’ in China’s “String of Pearls” construct in South Asia.

Recent gestures by India

[1] 2014 Malé drinking-water crisis

  • In the wake of a drinking water crisis in Malé in December 2014, following collapse of the island’s only water treatment plant, Maldives urged India for immediate help.
  • India came to rescue by sending its heavy lift transporters like C-17 Globemaster III, Il-76 carrying bottled water.

[2] 2020 Covid-19 crisis

  • During the COVID-19 crisis of 2020, India extended help to Maldives in the form of financial, material and logistical support.
  • Also, the IAF airlifted 6.2 tonnes of essential medicines and hospital consumables to Maldives, as part of ‘Operation Sanjeevani’.

[3] Greater Male Connectivity Project

  • India has recently announced the signing of a $500-million infrastructure project for the construction of the Greater Malé Connectivity Project (GMCP).
  • This infrastructure project, the largest-ever by India in the Maldives, involves the construction of a 6.74-km-long bridge and causeway link.

Why is Maldives significant for India?

  • Increasing maritime cooperation: As maritime economic activity in the Indian Ocean has risen dramatically in recent decades, the geopolitical competition too in the Indian Ocean has intensified.
  • Toll Gate in Indian Ocean: It is situated at the hub of commercial sea-lanes running through the Indian Ocean. More than 97% of India’s international trade by volume and 75% by value passes through the region.
  • Naval cooperation: Maldives is an important partner in India’s role as the net security provider in the Indian Ocean Region.
  • Important SAARC member: Besides, Maldives is a member of the South Asian Association for Regional Cooperation (SAARC) and the South Asia Subregional Economic Cooperation (SASEC).
  • People To People Contact: There is a significant population of Maldivian students in India. They are aided by a liberal visa-free regime extended by India. There is also medical tourism.
  • Major destination for Tourists: Tourism is the mainstay of the Maldivian economy. The country is now a major tourist destination for some Indians and a job destination for others.

Conclusion

  • There is a significant Indian diaspora in the Maldives. Innumerable Indians work across the hospitality, education, and health-care sectors of the Maldives economy.
  • India must use its Diaspora more extensively for strengthening its relations.

 

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Foreign Policy Watch: India-Maldives

Greater Male Connectivity Project

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Maldives and its location

Mains level: Read the attached story

Maldives has announced the signing of a $500-million infrastructure project for the construction of the Greater Malé Connectivity Project (GMCP) with India.

Greater Malé Connectivity Project

  • This infrastructure project, the largest-ever by India in the Maldives, involves the construction of a 6.74-km-long bridge and causeway link.
  • It will connect the Maldives capital Malé with the neighbouring islands of Villingli, Gulhifalhu and Thilafushi.
  • The seeds of the project were planted during the External Affairs Minister’s visit to Malé in September 2019.
  • The GMCP is not only the biggest project India is doing in the Maldives but also the biggest infrastructure project in the Maldives overall.

Significance of the Project

  • This project is significant because it facilitates inter-island connectivity in the country
  • Transport is a major challenge for residents who have to take boats or seaplanes to distant islands.
  • It becomes even more difficult during the monsoons when the seas are rough.
  • This bridge that would connect Malé with the three neighboring islands would ease the process.

The Chinese-made 1.39 km-long Sinamalé Bridge connects Malé with the islands of Hulhulé and Hulhumalé and this project, four tiles longer, would link the other three islands.

Why it is needed?

  • Male is one of the most densely populated cities in the world.
  • Close to 40% of the entire population of the Maldives lives in Malé, which has an area of approximately 8.30 square kilometres.
  • It is very congested and land is a major issue.

Why these islands?

  • On the island of Gulhifalhu, a port, is at present being built under the Indian line of credit.
  • Located some 6 kilometers from Malé, since 2016, the island has been promoted as a strategic location for manufacturing, warehousing and distribution facilities due to its proximity to the capital city.
  • Located 7 km from the capital, the artificial island of Thilafushi was created and designated as a landfill in the early 1990s, to receive garbage created mostly in Malé.
  • The Maldives has plans of expanding industrial work on Thilafushi, making this bridge’s connectivity to the capital indispensable for the transport of employees and other services.

Why did Male opt for India’s offer?

  • After a five-year grace period, the interest rate is 1.75% and the Maldives has to repay it over a 20-year period.
  • India’s loans are less expensive and more transparent, unlike China’s.
  • The Maldives hasn’t really been clear about how much debt it owes to China.

Importance of Maldives for India

  • Geo-strategic importance: Maldives, a Toll Gate in the Indian Ocean. Located in the southern and northern parts of this island chain lies the two important sea lanes of communication (SLOCs).
  • Trade: These SLOCs are critical for maritime trade flow between the Gulf of Aden and Gulf of Hormuz in West Asia and the Strait of Malacca in Southeast Asia. Nearly 50% of India’s external trade and 80% of its energy imports transit these SLOCs in the Arabian Sea.
  • Important SAARC member: Besides, Maldives is a member of the South Asian Association for Regional Cooperation (SAARC) and the South Asia Subregional Economic Cooperation (SASEC).
  • People To People Contact: There is a significant population of Maldivian students in India. They are aided by a liberal visa-free regime extended by India. There is also medical tourism.
  • Economic Cooperation: Tourism is the mainstay of the Maldivian economy. The country is now a major tourist destination for some Indians and a job destination for others.

What hinders India in Male?

  • Unstable governments: India’s major concern has been the impact of political instability in the neighbourhood on its security and development.
  • Religious extremism: In the past decade or so, the number of Maldivians drawn towards terrorist groups like the Islamic State (IS) and Pakistan-based madrassas and jihadist groups has been increasing.
  • Affinity with China: China’s strategic footprint in India’s neighbourhood has increased. The Maldives has emerged as an important ‘pearl’ in China’s “String of Pearls” construct in South Asia. It has also started using the China card to bargain with India.

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Foreign Policy Watch: India-Maldives

India-Maldives relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India-Maldives relation

The Soleh government’s ‘India First Policy’ provides respite to India when contrasted with the approach of the predecessors.

India-Maldives relations

  • India and the Maldives have had bilateral relations for centuries.
  • Maldivian students attend educational institutions in India.
  • Patients from the Maldives come here for super speciality healthcare.
  •  A liberal visa-free regime extended by India has aided the patients.
  • The Maldives is now a major tourist destination for some Indians and a job destination for others.
  • Given the geographical limitations imposed on the Maldives, India has exempted the nation from export curbs on essential commodities.

Assistance to the Maldives

  • In 1988, under Operation Cactus when a coup was attempted against President, India sent paratroopers and Navy vessels and restored the legitimate leadership.
  • The 2004 tsunami and the drinking water crisis in Male a decade later were other occasions when India rushed assistance.
  • In COVID-19 disruption, India rushed $250 million aid in quick time and also rushed medical supplies to the Maldives, started a new cargo ferry and also opened an air travel bubble, the first such in South Asia.

Strategic comfort to India

  • Abdulla Yameen was President when the water crisis occurred.
  • Now, the Yameen camp has launched an ‘India Out’ campaign against New Delhi’s massive developmental funding.
  • Maldivian protesters recently demanded the Solih administration to ‘stop selling national assets to foreigners’, implying India.
  • Mr. Yameen’s tilt towards China and bias against India when in power was evident.
  • It is against this background that the Solih administration’s no-nonsense approach towards trilateral equations provide ‘strategic comfort’ to India.

Concerns for India

  • India should be concerned about the protests as well as the occasional protest within the ruling Maldivian Democratic Party (MDP) of Mr. Solih.
  • There are apparent strains between Mohamed Nasheed, who was the nation’s first President elected under a multiparty democracy and Mr. Yameen.
  • This strain could affect the MDP during the run-up to the 2023 presidential polls.
  • Also, Mr. Nasheed’s on-again-off-again call for a changeover to a ‘parliamentary form of government’ can polarise the overpoliticised nation even more.

Conclusion

Given this background and India’s increasing geostrategic concerns in the shared seas, taking forward the multifaceted cooperation to the next stage quickly could also be at the focus of relations of the two countries.

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Foreign Policy Watch: India-Maldives

Operation Sanjeevani

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Operation Sanjeevani

Mains level: India-Maldives Relations

An Indian Air Force (IAF) C-130J transport aircraft o delivered 6.2 tonne of essential medicines and hospital consumables to Maldives under Operation Sanjeevani.

Operation Sanjeevani

  • At the request of the govt. of Maldives, the IAF aircraft activated Operation Sanjeevani and lifted these medicines from airports in New Delhi, Mumbai, Chennai and Madurai before flying to the Maldives.
  • Among other things, these medicines include influenza vaccines, anti-viral drugs such as lopinavir and ritonavir — which have been used to treat patients with COVID-19 in other countries.
  • The flights are being operated on commercial basis following demands from pharmaceutical companies and their intermediaries and will carry cargo on inbound as well as outbound flights.
  • The cargo operations will help the airline earn some revenue at a time there is a ban on passenger flights and the entire fleet is grounded.

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