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.