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Prime Minister Narendra Modi attended the Maldives' Independence Day celebrations as the guest of honor, marking a reset in bilateral ties between India and the Maldives. 

INDIA-MALDIVES RELATIONS

Why is the Maldives Strategically Important to India? 

India was one of the first countries to recognize the Maldives' independence in 1965, the year the British left the islands, beginning their official diplomatic relationship.

Geopolitical Significance => Its location provides India with strategic depth in the Indian Ocean, a region critical for global trade and energy security. 

• These routes, known as Sea Lanes of Communication (SLOCs), connect East Asia, the Middle East, and Africa. 
• About 50% of India's foreign trade and 80% of its energy imports pass through these waters. 
• This makes the Maldives vital for monitoring maritime traffic and ensuring security in the region.

SAGAR Vision => India's "Security and Growth for All in the Region" (SAGAR) vision highlights the importance of cooperative maritime security and economic development in the Indian Ocean, with the Maldives as a crucial partner.

• It aims to create trust, respect international maritime rules, solve issues peacefully, and increase cooperation in the Indian Ocean.
• India considers the Maldives a key player in this vision because a stable and prosperous Maldives helps maintain peace and security in the Indian Ocean.
• India also acts as the "first responder" for any crisis in the region, including for the Maldives. Example; Operation Cactus, Indian military intervention in the Maldives in 1988, to neutralize a coup attempt against President Maumoon Abdul Gayoom.

"Neighbourhood First" Policy => Maldives is a key pillar of India's "Neighbourhood First" policy, emphasizing robust engagement with immediate neighbours.

Countering External Influence => Maintaining strong ties helps India address concerns about increasing influence from other external powers in its backyard.

What was the outcome of the India PM's recent Visit to Maldives? 

Financial Assistance => India has provided Lines of Credit (LoC) for several infrastructure projects, including port development, road construction, and housing.

• India funds projects like social housing units (e.g., 3,300 units in Hulhumale), roads and drainage systems (e.g., in Addu City), and a new Ministry of Defence building.
• India has extended a Line of Credit of Rs 4,850 crore to the Maldives to support infrastructure development; this is for the first time India has extended credit to the Maldives in Indian Rupees.

Debt Relief => India reduced the Maldives' annual debt repayment obligations by 40% (from $51 million to $29 million).

Health => India helps with medical supplies, healthcare infrastructure, and gifting equipment like Aarogya Maitri Health Cube sets, which are portable medical facilities for emergencies.

Connectivity => India is helping to enable UPI (Unified Payments Interface) in the Maldives. They are also discussing a local currency settlement system to make trade easier.

What Challenges have Defined Recent India-Maldives Relations? 

"India Out" Campaign => President Mohamed Muizzu's ascent to power in November 2023 was partly fueled by an "India Out" campaign, demanding the withdrawal of Indian military personnel.

Political Shifts => Maldivian domestic politics sees varying stances towards India, impacting the bilateral dynamic. 

• Governments, sometimes leaning towards other powers, can test the relationship's resilience.

Geopolitical Competition => The Indian Ocean has become a theatre of increased geopolitical competition, with various global powers seeking influence, presenting challenges for India's traditional role.

External Influence (China) => China's growing presence and investments in the Indian Ocean, particularly through its Belt and Road Initiative (BRI), create competition for influence. 

• The Maldives has borrowed significantly from Chinese banks, making China a major creditor.
• China has also sought permission to install "Fish Aggregating Devices" in the Indian Ocean, raising strategic concerns for India.

What is the Way Forward for India-Maldives Relations?

Sustained Diplomatic Engagement => Regular high-level visits and diplomatic interactions are crucial to bridge gaps and build trust.

Deepening Economic => Explore new areas for trade, moving beyond traditional goods. 

• Encouraging Indian private sector investment in the Maldives, especially in sustainable tourism, fisheries, and renewable energy.

Climate Diplomacy => India can offer expertise and support in areas like coastal protection, water management, and renewable energy adoption. 

Security Cooperation => India supports the Maldives in strengthening its defense capabilities and enhancing maritime security, including through joint work under the Colombo Security Conclave.

• Increase coordinated patrols and aerial surveillance of their Exclusive Economic Zones (EEZs), to combat illegal fishing, drug trafficking, piracy, and other transnational crimes. 

Counter China => Offer better terms of credit and joint implementations of development projects to counter Chinese influence. 

Enhancing People-to-People Ties => Encourage more cultural exchanges, tourism, and educational opportunities between the citizens of both countries. 

Enhancing Multilateral Cooperation => Collaborating within frameworks like the Indian Ocean Rim Association (IORA) and the Colombo Security Conclave can address issues to the entire region, such as maritime security, disaster management, and sustainable ocean economy.

• While SAARC faces challenges, exploring effective sub-regional cooperation mechanisms could benefit both nations and the broader South Asian neighbourhood.

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Source: INDIAN EXPRESS