India-Maldives

• India announced a slew of new connectivity measures for the Maldives to help the island nation deal with the economic impact of the COVID-19 pandemic 
• It include: 
• An “air bubble agreement” for travel, a direct ferry service and a submarine cable for telecom connectivity.
• US $500 million assistance for the Greater Male Connectivity project (GMCP) to connect Male to three neighbouring islands - Villingili, Thilafushi and Gulhifahu islands. GMCP would be the largest civilian infrastructure project in Maldives. 
• US $400 million LoC comes in addition to a previous LoC of $800 million that was announced in 2018.
• Strategic Importance of Maldives :
• Maldives lies in close proximity to the west coast of India and have the potential to allow a 3rd nation’s naval presence in the area
• Maldives is situated at the hub of commercial sea-lanes running through the Indian Ocean. More than 97% of India’s international trade by volume and 75% by value passes through the region. 
• India’s ambition of ‘Net-security provider’ in IOR calls for close military and naval ties with Maldives
• China is rapidly expanding its footprint in the Maldives though it opened an embassy in the island nation only in 2011.
• Economic relations
• India and Maldives signed a trade agreement in 1981, now bilateral trade stands at US$ 288.99 Million (2018) heavily in favour of India. India is Maldives’ 4th largest trade partner.
• SBI 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
• Since Operation Cactus (1988), in which Indian Troops prevented a coup in Maldives, defence and security has been a major area of cooperation between both
• India provides 70% of Maldivian defence training requirements for Maldivian National Defence Force (MNDF)
• Indian Army and MDNF have been conducting Exercise Ekuverin (‘Friends’ in the Maldivian language) since 2009.
• Development Assistance
• Major completed development assistance by India include Indira Gandhi Memorial Hospital, Maldives Institute of Technical Education, Construction of National Police Academy etc. 
• Grants for projects under High Impact Community Development Projects (HICDPs)which includes projects such as ambulances, Convention Centre, drug rehabilitation centre, police station upgradation etc. 
• India has provided large-scale assistance to Maldives in the aftermath of the 2004 Indian Ocean tsunami and during the 2014 Male water crisis under Operation Neer. 
• People to people relations
• Indians are the 2nd largest expatriate community in the Maldives. About 25%of Doctors and Teachers in Maldives are Indian nationals.
• India offers several scholarships to Maldivian students such as Indian Council for Cultural Relations scholarships, SAARC Chair Fellowship etc.
• The India Cultural Center (ICC) in Male was inaugurated in 2011, which conducts courses in yoga, classical music and dance. Also, Hindi commercial films, TV serials and music are immensely popular in Maldives.
• In 2019, Indian PM was conferred with the Maldives’ highest honour — Rule of Nishan Izzuddeen 
• Challenges
• The Maldives’ reliance on China to develop more than US$ 2.5 billion in infrastructure projects and the resulting accumulation of foreign debt— 40% of the country’s GDP, is a concern for India. These raises concerns about Chinese debt-trap diplomacy. 
• Political instability in Maldives as democracy is yet to take a firm footing is a cause of concern as it will have impact on India’s relations. E.g. in 2012 Maldives announced termination of a USD 511 million project with the Indian infrastructure company GMR Infrastructure Limited. 
• Its political instability has challenged overall security of the Indian Ocean by increasing radicalisation — over 200 Maldivians reportedly joined the Islamic State —and by the granting of non-transparent permissions for foreign investment. 
• Way Forward 
• Both countries need to enhance regional cooperation by using common platforms such as the Indian Ocean RIM Association and Indian Ocean Naval Symposium. 
• While the recent ‘India-First Policy’ of the Maldives and India’s ‘Neighbourhood First Policy’ are intuitively complementary, implementing these policies with strategic sensitivity is of the utmost importance.