Economic Cooperation, Cultural Bonds and India's Assistance to Maldives

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  • Defence and economic cooperation are two important areas in bilateral ties

  • Cooperation to counter piracy and terrorism is on the rise

  • In 1988, India thwarted an attempt by Sri Lanka’s Tamil militants to overthrow the Gayoom government in Maldives

Economic Cooperation

  • Tourism and fishing are major industry in Maldives. It has to import everything else.

  • Hence, bilateral trade largely comprises exports by India

  • Investments by India companies have been increasing in sectors such as education, hospitality, renewable energy , health and waste management and marine products

India recently announced a package including

  • Renovation of the Indira Gandhi Memorial Hospital

  • Construction of the Faculty of Hospitality and Tourism by 2015

  • Establishment of a development finance institution

  • Setting up an IT Village in Male

  • Promotion of Maldives as a film shooting destination

  • Enhance connectivity through the launch of a passenger-cum-cargo ferry service between Kochi and Male by November 2011

  • India would provide $40 million line of credit for the housing sector and $100 million as soft loan for a comprehensive economic development package.

Cultural Bonds

  • ICCR to set up the Indian Cultural Centre in Male

  • India’s music, dances, films and cuisine are popular with the people

  • Maldives will host the next SAARC summit in November, for which India is extending all necessary assistance

  • These efforts can perhaps be broadened by involving our youth

  • India must invest in raising awareness and interest within India about relations with our smaller neighbours

India’S Assistance to Maldives

  • Extended assistance in the form of equipment and training

  • Measures designed to enhance cooperation between Coast Guards

  • Help in undertaking Hydrographical surveys in Maldivian waters Without a friendly, peaceful and prosperous South Asia, India’s ambition to be a great power may remain unfulfilled.

Diaspora in Maldives

Nov 2011

  • India Maldives sign a framework agreement of cooperation and development and a MoU, which will serve as the bedrock for joint cooperation in safeguarding each other’s security interests.

    • Security and development are the focus of the agreement

  • India announced $100 mn in credit to the island nation for stabilising its fiscal position

    • Maldives faces a serious credit crunch. It has allowed its currency to float in a limited band.

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