Brief Context
Context Maldivian Foreign Minister has arrived in New Delhi to lead the Maldivian delegation at the 2nd High Level Core Group (HLCG) meeting. About Both foreign ministers will review the progress of the India–Maldives comprehensive economic and maritime security partnership. The India-Maldives vision document on a comprehensive economic and maritime security partnership was adopted by Prime Minister Narendra Modi and Maldivian President last year.
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Syllabus: GS2/IR
Context
- Maldivian Foreign Minister has arrived in New Delhi to lead the Maldivian delegation at the 2nd High Level Core Group (HLCG) meeting.
About
- Both foreign ministers will review the progress of the India–Maldives comprehensive economic and maritime security partnership.
- The India-Maldives vision document on a comprehensive economic and maritime security partnership was adopted by Prime Minister Narendra Modi and Maldivian President last year.
Key Highlights of the Vision Document
- Bilateral Commitment and Financial Support: India reaffirmed its commitment under ‘Neighbourhood First’ and Vision SAGAR.
- India extended emergency financial assistance (rollover of $100 million in T-bills and currency swap worth $400 million + ₹30 billion).
- Framework for a Comprehensive Partnership: A new strategic framework is established for a Comprehensive Economic and Maritime Security Partnership, intended to be people-centric and future-oriented.
- Serve as a stabilizing force in the Indian Ocean Region.
- Development Cooperation: Enhanced infrastructure projects such as ports, airports, housing, schools, roads, hospitals.
- Trade and Economic Cooperation: Explore a Bilateral Free Trade Agreement (FTA).
- Enable local currency trade settlement to reduce dollar dependence.
- Boost investments and ease of doing business.
- Support Maldivian economic diversification (blue economy, fisheries, oceanography).
- Collaboration on Digital Public Infrastructure: UPI, Digital ID, Gati Shakti.
- Expansion of RuPay and digital payment infrastructure.
- Shared expertise in fintech and digital governance.
- Energy Cooperation: Focus on renewables (solar power), energy efficiency.
- Participation in One Sun One World One Grid initiative.
- Institutional cooperation through joint research, training, and investment.
- Health Cooperation: Access to affordable Indian healthcare and generic medicines (Jan Aushadhi Kendras).
- Recognition of Indian Pharmacopoeia in Maldives.
- Regional and Multilateral Cooperation: Work together in the Colombo Security Conclave (CSC) and other multilateral fora.
- Emphasis on maritime safety, regional peace, and mutual representation.
- Implementation Mechanism: A High-Level Core Group (HLCG) has been formed to monitor and oversee the implementation of all cooperation initiatives.
- The group will include senior representatives from both governments.
Significance
- Regional Stability: This partnership is crucial for stability in the Indian Ocean amidst growing Chinese presence in the region.
- Diplomatic Maturity: Shows both sides’ willingness to move past tensions and focus on long-term shared interests.
- People-Centric Focus: Heavy emphasis on health, education, housing, and livelihood is notable.
- Economic Sovereignty for Maldives: Local currency trade and support for diversification give Maldives more economic autonomy.
- Security Balance: India remains a key security partner, but through cooperation tailored to Maldivian preferences.
| Highlights of India – Maldives Relations – Participation in Multiple Forums: Both nations are founding members of the South Asian Association for Regional Cooperation (SAARC), the South Asian Economic Union and signatories to the South Asia Free Trade Agreement. – Economic partnership: India emerged as Maldives’ largest trade partner in 2023. 1. India is one of the biggest investors and tourism markets for the Maldives, with significant trade and infrastructure projects underway. – Defense and Security Cooperation: Since 1988, defence and security has been a major area of cooperation between India and Maldives. 1. A comprehensive Action Plan for Defence was also signed in 2016 to consolidate defence partnership. 2. Estimates suggest that almost 70% of Maldives’ defence training is done by India. – Tourism: In 2023, India is the leading source market for Maldives with a 11.8% market share. 1. In March 2022, India & Maldives agreed for an open skies arrangement which will further improve connectivity between two countries. – Connectivity: The Male to Thilafushi Link project, popularly known as the Greater Male Connectivity Project (GMCP), is a USD 530 million infrastructure project. 1. The project aims to connect Male to Villingili, Gulhifalhu and Thilafushi islands through a series of bridges, causeways and roads. 2. The project is crucial for the proposed Gulhifalhu Port, and will be a major catalyst for the Maldivian economy. |
Way Ahead
- Maldives is India’s key maritime neighbour and an important partner in India’s ‘Neighbourhood First’ policy and vision MAHASAGAR which is Mutual and Holistic Advancement for Security and Growth Across Regions.
- By acknowledging and addressing the challenges, India and the Maldives can navigate the complexities of their relationship and build a stronger, more resilient, and mutually beneficial partnership for the future.
Source: TH