India Maldives Relations

Syllabus: GS2 > International relations   >   India and Neighbours 

REFERENCE NEWS:

• Recently, the newly elected President of the Maldives, Mohamed Muizzu, “formally requested” the Indian government to “withdraw its military personnel” from the country.

MORE ON NEWS:

• For two years preceding his election, Muizzu’s political mentor and former President Abdulla Yameen had led an ‘India Out’ campaign. It was known that Muizzu would continue the China-leaning Yameen’s path on the issue.  
• Abdulla Yameen's predecessor, Ibrahim Solih, has strongly embraced the "India First" policy. 

MALDIVES:

• It is a small island nation situated in the Indian Ocean. It lies southwest of India, at about 700 kilometres from the mainland. Malé is its capital.
• The archipelago is located on the Chagos-Laccadive Ridge.
• The Maldives is one of the world's most geographically dispersed sovereign states, consisting of a chain of 26 atolls. It is also the smallest Asian country by land area and population.
• The region became a British protectorate in 1887. It gained Independence in 1965 and a Presidential republic was established in 1968 with an elected People's Majlis

INDIA AND MALDIVES: AREAS OF COOPERATION:   

WHY MALDIVES IS SIGNIFICANT FOR INDIA?

• Countering Chinese presence:
  • China’s strategic interests over India have prompted it to increase its presence in the Indian Ocean through strategies such as the ‘String of Pearls’. However, a strong relationship with Maldives can help India counter such strategies.
• Maritime security:
  • The Maldives is geographically positioned like a ‘toll gate’ between the major chokepoints- the Gulf of Aden, Strait of Hormuz and the Strait of Malacca. Thus, the Maldives have broad strategic significance for countering piracy and ensuring smooth global maritime trade.
• Counter terrorism:
  • The island nation could serve as a potential launch pad for terrorists targeting India and there are concerns about the activities of radical elements in the Maldives. Hence, India desires an intelligence sharing mechanism with the region.
• Economic:
  • India is Maldives’ 2nd largest trade partner. India-Maldives bilateral trade crossed the USD 300 million mark for the first time in 2021 which further crossed USD 500 million mark in 2022, heavily in favour of India. Maldives also has an intrinsic role in advancing the blue economy through sustainable management and utilization of marine resources.
• To strengthen SAARC:
  • Maldives is an important member of SAARC. It is important for India to have Maldives on board to maintain its leadership in the region.
• Diaspora:
  • There are over 20,000 Indian nationals living in Maldives. The Indian expatriate community consists of doctors, nurses and technicians, teachers, construction workers, tailors, etc. spread all over the country
• Tourism:
  • According to the Maldives tourism ministry, in 2023, India with 147,527 tourists arrivals (until 27th September 2023) is the 2nd leading source market for Maldives with a 11% market share. In March 2022, India & Maldives agreed for an open skies arrangement which will further improve connectivity between two countries.

CHALLENGES IN INDIA MALDIVES RELATIONSHIP:

• Weak financial health:
  • Currently, the island state owes nearly 70% of its total external debt to China. This debt may force the country to make major concessions over its sovereignty as Sri Lanka has over Hambantota port (Srilanka was forced to sign a 99-year lease with China for the port after it was unable to repay loans to develop the project)
• China’s upper hand:
  • China holds considerable leverage over the archipelago. The Maldivian economy is heavily dependent on the FTA with China and China is a main source of tourists. Furthermore, the Maldivian fishing industry remains dependent on the Chinese market.
  • In 2021, Chinese firm Sino Soar Hybrid Technology, whose energy project was suspended in Sri Lanka after India raised concern over its location close to the Tamil Nadu coast, signed a similar project in the Maldives.
• China’s strategic presence:
  • China has been investing heavily in infrastructure in Maldives to expand its ‘One Belt One Road’ programme. China has also leased several Maldivian islands, with the potential of militarizing them in the future. Given the uncertain dynamics of Sino-Indian relations, China’s potential strategic presence in Maldives remains a concern.
• Political instability:
  • Political turmoil has plagued the archipelago for years. 
  • Between 2013 and 2018, then-President Yameen’s administration was seen as tilting heavily towards China and had led an ‘India Out’ campaign. 
  • While the Ibrahim Solih's government (2018–2023) strongly embraced the "India First" policy, it was known that the newly elected president, Muizzu, would continue the China-leaning Yameen’s path. 
• Growing extremism:
  • The growth of religious extremism in Maldives has been a matter of concern for India. Evidences of the rising presence of radical Islamist fundamentalists in the Maldives have emerged in recent times.
• Environmental concerns:
  • With an average elevation of just 1.5 meters, rising sea levels and climate change will put the island nation further at risk of endangering its relative prosperity. In order to protect the islands, they need strong investments and it needs to be seen if India can cater to this demand.

WAY FORWARD:

• Leverage on soft diplomacy:
  • India must employ its cultural aspects like diaspora, films, music, and people to people interaction to strengthen relations with Maldives.
• Economic support:
  • New Delhi’s economic outreach, like the line of credit of $800 million, is key to helping Male break free of Beijing’s “debt-for-leverage” model of diplomacy.
• Increase investments:
  • To deepen its engagement with the Maldivian economy, India needs to encourage its private sector enterprises (such as telecom) to invest in the region.
• Sustainable development:
  • India is a global frontrunner in the efforts towards sustainable development and countering climate change. India can help the Maldives in adapting to climate change, through deepening engagements in renewable energy, sustainable fishing and coastal area management.
• Security cooperation:
  • Both countries should strengthen cooperation in areas of counter-terrorism, counter-radicalisation and drug trafficking, through measures like regular intelligence sharing and joint security exercises. 
• Strategic cooperation:
  • India has agreements with countries like the U.S. and France to use their naval facilities in Djibouti, Diego Garcia etc if required. In this line, India should explore the possibilities of closer cooperation with countries like Australia and African nations to further counter Chinese growth in the Indian Ocean.

CONCLUSION:

• India should approach the relationship with the Maldives with flexibility, aiming to negotiate and adjust to the new political landscape in the island nation while ensuring its strategic and security interests are not compromised. This approach requires balancing diplomatic engagement with firmness on key strategic issues.

PRACTICE QUESTION:

Q. “The island nation of Maldives has an outsized importance in Indian foreign policy”. Discuss (10 marks, 150 words)