India hands over coastal radar system to Maldives

• Minister of External Affairs S. Jaishankar formally handed over the Coastal Radar System to the Maldives Chief of Defence Force Maj Gen Abdulla Shamaal.

• The Coastal Radar System, which is already operational and comprises 10 radar stations, will contribute in enhancing maritime security for the Maldives and for the entire region.

• The minister described it as a fine example of India’s SAGAR and ‘Neighbourhood First’ policies.

• Security and Growth for all in the Region (SAGAR) is aimed at cooperative measures for sustainable use of the oceans in the region.

• Jaishankar inaugurated the National College for Policing and Law Enforcement (NCPLE) in Addu city in the presence of Maldivian President Ibrahim Mohamed Solih.

• A Memorandum of Understanding (MoU) was also signed between the Sardar Vallabhbhai Patel National Police Academy (SVPNPA) and the Maldives Police Force to support the upgradation of police infrastructure across the archipelago.

• Vilunu Drug Detoxification and Rehabilitation Centre in the Maldives’ Addu city, the first of the 20 High Impact Community Development Projects (HICDPs) to be completed with the Indian assistance, was also inaugurated.

• The minister also inaugurated the Meedhoo eco-tourism zone.

• The Maldives is one of India’s key maritime neighbours in the Indian Ocean region and the bilateral defence and security ties have been on an upward trajectory in the last few years.

Major projects in Maldives funded by India

• India development cooperation in Maldives is more than $2.2 billion. 

• India is currently implementing 20 projects in the Maldives in diverse areas of health, education, fisheries, tourism, sports, gender empowerment and culture. Nine of these are located in Addu, including five eco-tourism zones.

• In September 2021, Line of Credit of $40 million for Sports Infrastructure Development and EXIM Bank’s Buyers Credit of $227 million for construction of 4,000 Social Housing Units in Hulhumale were signed.

• Construction activity has begun on 4,000 housing units in Hulhumale as well as drinking water and sanitation projects on 34 islands. 

• The Hanimaadhoo Airport Redevelopment project, the expansion of facilities for Maldives Industrial Fisheries Company Limited (MIFCO), and the Cricket Stadium Project in Hulhumale are all in the tendering stage.

India-Maldives relations

• Maldives’ proximity to the west coast of India (it is barely 70 nautical miles away from Minicoy and 300 nautical miles away from India’s West coast), and its situation at the hub of commercial sea‐lanes running through Indian Ocean imbues it with significant strategic importance to India.

• India and Maldives share ethnic, linguistic, cultural, religious and commercial links. Both the nations enjoy close, cordial and multidimensional relations based on shared values of democratic virtues, peaceful coexistence and rule of law.

• Both the countries are key players in maintaining safety and security of the Indian Ocean Region (IOR).

• Maldives occupies a very special place in the ‘Neighborhood First Policy’ and the SAGAR (Security and Growth for All in the Region) vision of the government of India.

• ‘India First’ has been a stated policy of the government of Maldives and President Solih, ever since he assumed office in November 2018. 

• Bilateral cooperation with Maldives includes the creation of people-friendly infrastructure – housing, water and sanitation, health and education, ports, roads and stadiums. It also includes maritime security, connectivity and people to people exchanges.

Defence: Since 1988, defence and security has been a major area of cooperation between India and Maldives. India has been assisting Maldives in capacity building by meeting its requirements of defence training and equipment. India provides the largest number of training opportunities for Maldivian National Defence Force (MNDF), meeting around 70 per cent of their defence training requirements. A comprehensive Action Plan for Defence was also signed in April 2016 to consolidate defence partnership.

Trade: India and Maldives signed a trade agreement in 1981, which provides for export of essential commodities. India is now Maldives’ second largest trade partner, with 13 per cent of market share for Indian exports. In July 2021, India extended the agreement on quotas for restriction-free export of 9 essential commodities to the Maldives for next three years.

To further ease of export and import, in July 2021, India’s Central Board of Indirect Taxes and Customs (CBIC) and Maldives Customs Service (MCS) signed a MoU on Pre-arrival exchange of cargo data. 

The direct cargo vessel service between India and Maldives started in September 2020 continued its voyages and assisted in keeping the prices low for Maldivian consumers at a time of disruption in supply lines. There is growing trade and commercial ties between India and Maldives.

Tourism: The Maldivian economy is heavily dependent on its tourism sector, which is the major source of foreign exchange earnings and government revenue. Tourism directly accounts for about quarter of the Gross Domestic Product (GDP) of Maldives and indirectly for a much larger proportion of GDP. In terms of direct employment, tourism accounts for more than a third of job opportunities for Maldivians and if the allied sectors are included, the contribution of tourism sector in total employment (direct and indirect) would rise up to nearly 70 per cent. India was among the top sources of tourists for Maldives in 2020 and 2021, helped by the air bubble arrangement, with more than 60 flights per week.

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