| UPSC Relevance Prelims: India–Maldives Relations-Key Defence & Security Exercises,Exercise Ekuverin – Joint military exercise,Exercise Dosti – Trilateral coast guard exercise (India, Maldives, Sri Lanka),Exercise Ekatha – Defence cooperation between navies Strategic Geography-Maldives’ location in the Indian Ocean Region (IOR),Critical to India’s SAGAR Doctrine (Security and Growth for All in the Region) Mains-GS Paper II – International Relations .India’s bilateral relations in South Asia .India’s Neighbourhood First and SAGAR policies .Strategic maritime partnerships |
Why in News?
Prime Minister Narendra Modi’s visit to the Maldives as the Chief Guest for its 60th Independence Day celebrations marks a significant revival in bilateral ties. This comes after a period of diplomatic tension following the “India Out” campaign during President Mohamed Muizzu’s 2023 election campaign, which led to a counter “Boycott Maldives” campaign in India.
The visit signalled the return of mutual trust and strategic warmth, reinforcing India’s commitment to its “Neighbourhood First” policy and its role as a key development and security partner in South Asia.
Background
India and the Maldives have traditionally enjoyed close, multifaceted ties spanning diplomacy, culture, defence, and trade. While bilateral relations faced a brief chill following the rise of an anti-India narrative in Maldivian domestic politics, 2024 witnessed a strategic reset during President Muizzu’s state visit to India. India’s subsequent gestures of economic and diplomatic support have laid the foundation for renewed cooperation.
Key Developments During the 2025 Visit
1️⃣ Strategic Economic Assistance
- India announced a $565 million Line of Credit (~₹4,850 crore) to support Maldives’ infrastructure and economic resilience.
- Maldives’ debt servicing burden on previous Indian credit lines was reduced by 40%, easing fiscal pressure.
- A currency swap arrangement was also agreed upon to stabilise the Maldivian rufiyaa and facilitate trade.
2️⃣ Boost to Bilateral Trade and Digital Integration
- Launch of India-Maldives Free Trade Agreement (FTA) negotiations, expected to enhance trade, services, and investment flows.
- Signing of MoUs in key sectors:
- Fisheries and marine resources
- Meteorological science and disaster preparedness
- Digital public infrastructure and e-governance
- Pharmaceutical cooperation
- National payments integration (rupee-rufiyaa transactions)
3️⃣ Maritime and Regional Security Partnership
- The visit underscored India’s role as a regional maritime security anchor, with the Maldives reaffirming its participation in trilateral consultations with India and Sri Lanka.
- Soon after Modi’s visit, Maldives welcomed Sri Lankan President Anura Kumara Dissanayake, signalling regional cohesion.
India-Maldives Relations: A Strategic and Civilisational Partnership
India and the Maldives share a deep-rooted relationship with historical, religious, and cultural underpinnings. This relationship has evolved into a strategic and economic partnership, vital for regional peace and prosperity.
Historical Foundations
- India and Maldives established diplomatic relations in 1965 after the British exit.
- Since 2008, India has consistently engaged with all segments of Maldivian society — political, military, civil, and business — to deepen mutual cooperation.
- The two nations also share ancient civilisational ties, including Buddhism, which was the dominant religion in Maldives until the 12th century. Inscriptions of Vajrayana Buddhism point to centuries of cultural exchange.
Maldives’ Importance for India
- Its geostrategic location in the Indian Ocean makes Maldives critical to India’s maritime security and energy routes, acting as a gateway to the Arabian Sea and East Africa.
- Maldives is central to India’s Indian Ocean security strategy and SAGAR (Security and Growth for All in the Region) vision.
- A stable Maldives supports India’s Neighbourhood First policy, countering external influences in South Asia, particularly China’s footprint.
India’s Role in Maldives’ Development
- India supplies essential commodities like rice, spices, vegetables, and medicines.
- Indian assistance helps build Maldives’ critical infrastructure, such as ports, roads, and coastal protection systems.
- Maldivian students pursue higher education in Indian universities, often supported by scholarships.
- India has provided humanitarian aid during natural disasters, including the 2004 tsunami, drinking water crises, and the COVID-19 pandemic.
Defence and Security Partnership
- India remains Maldives’ most trusted security partner, having thwarted a coup attempt in 1988 through Operation Cactus.
- Ongoing military collaboration includes:
- Ekuverin (Army exercises)
- Dosti (Coast Guard trilateral exercise with Sri Lanka)
- Ekatha (Joint naval training)
Tourism and Soft Power
- Indian tourists are a key revenue source for the Maldivian economy.
- In 2023, Indians constituted 11.2% of all tourist arrivals, totalling 18.42 lakh visitors, making India the top contributor to Maldives’ post-pandemic tourism revival.
Regional Significance and India’s Foreign Policy Priorities
This outreach to Maldives comes at a time when India faces geopolitical headwinds:
- Trade tensions with the U.S.
- Conflicts in Ukraine and Gaza
- Security concerns following the Pahalgam attacks
- Tensions with Bangladesh
Yet, India’s renewed engagement with the Maldives — and planned visits of leaders like Nepal PM K.P. Sharma Oli — indicate a conscious effort to re-anchor ties with immediate neighbours, both diplomatically and strategically.
Way Forward
1. Institutionalise Economic and Digital Partnerships
- Conclude the FTA with a focus on blue economy, digital connectivity, and tourism diversification.
- Encourage digital public infrastructure sharing to empower the Maldives’ governance systems.
2. Strengthen Maritime Security Cooperation
- Expand trilateral maritime dialogues and joint naval patrols.
- Ensure Maldives remains within India’s strategic radar amidst regional competition from China.
3. Enhance People-to-People Connectivity
- Facilitate educational exchanges, cultural festivals, and healthcare partnerships.
- Promote counter-misinformation campaigns to manage public perceptions on both sides.
4. Recalibrate and Reinvest in Neighbourhood First
- Maintain continuous political engagement with all South Asian countries, not just episodic diplomacy.
- Use platforms like BIMSTEC, IORA, and SAARC for regional resilience and multilateral solutions.
Conclusion
India’s deepening ties with the Maldives are not just about diplomacy — they represent a strategic choice to secure the Indian Ocean region, protect economic interests, and counterbalance emerging powers. As Prime Minister Modi rightly said, India and the Maldives are “fellow voyagers on a shared journey” — and nurturing this voyage is vital for India’s role as a regional leader and a responsible neighbour.
Upsc prelims practice question![]()
Q.Which of the following statements regarding the 8° Degree Channel is/are correct?
- It separates the Lakshadweep Islands from the Maldives.
- It is located between Minicoy Island (India) and the northernmost atoll of the Maldives.
- It is of strategic importance for India’s maritime surveillance.
Select the correct answer using the code below:
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2 and 3
Answer: B) 2 and 3 only
Upsc mains pyqs-
Q. Discuss the political developments in the Maldives in the last two years. Should they be a cause of concern for India? (2013)
SOURCE- THE HINDU
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