General Studies Mains Test Series (International Relations)

India Maldives Dialogue on Security:

India-Maldives Relations

India and Maldives share ethnic, linguistic, cultural, religious and commercial links steeped in antiquity and enjoy close, cordial and multi-dimensional relations.
India contributed to maintaining security on the island nation and has forged an alliance with respect to its strategic interests in the Indian Ocean.
India was among the first to recognise Maldives after its independence in 1965 and to establish diplomatic relations with the country. India established its mission at the level of CDA in 1972 and resident High Commissioner in 1980. Maldives opened a full fledged High Commission in New Delhi in November 2004, at that time one of its only four diplomatic missions worldwide.

India-Maldives relations have been growing steadily in the last few years. The Indian prime minister visited Maldives for the 17th SAARC summit in November 2011. During the visit, India announced a stand-by credit facility of $100 million for Maldives and promised help in setting up the Maldives Police Academy. India subscribed fully to the $100 million in bonds issued by the Maldives monetary authority. Ambitious plans to enhance connectivity between the two countries were also announced. They agreed to increase regional and sub-regional transport connectivity and enhance cooperation in renewable energy, education, environment and sustainable development.

The two countries also agreed to strengthen maritime security in the Indian Ocean region through coordinated patrolling, aerial surveillance, exchange of information and capacity building and by building a legal framework for the effective handling of piracy.

Political relations

Bilateral relations have been nurtured and strengthened by regular contacts at the highestlevels. Since establishment of diplomatic relations, almost all Prime Ministers of India visited theMaldives. From the Maldivian side, President Maumoon Abdul Gayoom and PresidentMohamed Nasheed made a number of visits to India during their respective Presidency. The incumbent President Dr. Mohamed Waheed made his first official visit abroad to India in April2012.

Recent visits from Maldives include a multi-party Parliamentary delegation from the People’s Majlis of Maldives led by Speaker of People’s Majlis Abdulla Shahid (May 2013), a seven member senior delegation from the Elections Commission of Maldives led by President of ECM, Fuad Thaufeeg (May 2013), a delegation of judges Chief Justice Ahmed Faiz (June 2013),former President Maumoon Abdul Gayoom (June 2013) and former President Mohamed Nasheed (August 1-3, 2013). On international issues Maldives had consistently supported India in multilateral fora,such as the UN, the Commonwealth, the NAM and the SAARC. Maldives was one of the first countries to convey its support for the candidature of Shri Kamalesh Sharma as the Commonwealth Secretary General.

Maldives also co-sponsored the G-4 draft resolutions on UN reforms.
India has extended support to Maldives candidature for a non-permanent seat in the UN Security Council for the term 2019-20.

Economic and Commercial relations

India and Maldives signed a trade agreement in 1981, which provides for export of essentialcommodities. Growing from modest beginnings, India-Maldives bilateral trade now stands at Rs.700 crores. Indian imports from the Maldives primarily comprise scrap metals while Indian exports to the Maldives include agriculture and poultry produce, sugar, fruits, vegetables, spices, rice, atta, textiles, drugs and medicines, a variety of engineering and industrial products, sand and aggregate, cement for building etc. In a major development, India announced in June 2011, the release of three year quota for export of essential commodities like Stone Aggregates, Rice, Wheat Flour, Sugar, Dal, Onion, Potato and Eggs from India to Maldives.
Bilateral Assistance

Wherever possible, India has been offering assistance to Maldives in its developmentalprocess. The major projects executed by India are:

Indira Gandhi Memorial Hospital: (IGMH)
During former Prime Minister Shri Rajiv Gandhi’s visit to Male’ in 1986, it was agreed to establish a medical complex in Male’ with Indian assistance. Accordingly, the 200-bed hospitalwas established at an estimated cost of Rs.42.5 crores and inaugurated in April 1995. IGMH,

Male now serves as the most advanced tertiary care hospital in Maldives and is easily the most visible symbol of India’s assistance to the Maldives. Though at present, the Government of Maldives is responsible for managing/running the hospital, Government of India continues to offer substantial assistance to the institution. During the visit of Hon’ble Prime Minister of India Dr. Manmohan Singh to Maldives in November 2011, Government of India signed an agreement to undertake major renovation of IGMH at a total cost of Rs.37.24 crores.

Faculty of Engineering Technology (FET):
Maldives Institute of Technical Education (MITE) was set up as a grant-in-aid project ofGovernment of India in 1996. Having a capacity to train at least 200 students a year in varioustechnical/vocational disciplines, MITE was renamed as Faculty of Engineering Technology(FET) in order to better reflect the academic programmes conducted by it, is functioning well.

Indian Investment

The State Bank of India has been playing a vital role in the economic development of the Maldives since February, 1974 by providing loan assistance for promotion of island resorts, export of marine products and business enterprises. Taj Group of India runs Taj Exotica Resort& Spa and Vivanta Coral Reef Resort in Maldives.

Earlier, in November 2009, Suzlon Energy of India signed an MoU to set up a 25 MW wind farmat an investment of US$40 million in the Southern Province of Maldives and Shri Educare of Delhi signed an MoU to take over the management of Ghiyassudin School, the first suchinitiative under the privatization policy of the Government of Maldives. In July 2010, Bommidala Infrastructure of India signed an agreement for 25-MW solar energy project in the Upper Southern province. Other proposals in the area of education, renewable energy, health and waste management are also under active consideration.

GMR - Maldives Airport Row

In June 2010, the Maldives government, the Maldives Airports Company Limited (MACL) and GMR-MAHB Consortium signed a tripartite concession agreement to develop and run the Ibrahim Nasir International Airport at Malé, the capital of the island nation.

However, after the contract was signed, the Maldives government changed. President Nasheed was replaced by President Waheed in a coup. This government claimed the contract was invalid. The airport is very significant for the nation, as out of its US$2 billion annual GDP, about a fifth is made up of revenues that are connected to the airport. Under the terms of the contract, Maldives had decided to make a passenger service charge a pass through item from the airport. In other words, the sum earlier being earned by the MACL now goes to the government directly. Instead it had allowed GMR to levy an Airport Development Charge (ADC) on the departing passengers, which GMR claims is an international experience.

The ADC was later turned illegal by a local court and could have been legalised had the country’s Majlis approved such a charge. Before this could happen, the government changed in the coup. In the absence of such a charge the earlier government had allowed GMR to deduct the ADC revenues from the revenue share of the government. Due to this offset, the government has to pay $3.5 million to GMR for the current calender year period till November. This charge has got caught up in the national legislature which projected that MACL can instead earn a $4 billion in the term of the concession period ie till the year 2035. But with GMR running the airport the revenue share for the nation will amount to $1. 4 billion. Against this argument, GMR has projected that Maldives will earn $2.1 billion.
The Singapore court on 6 December 2012, allowed the government to take over the airport from GMR.

Military relations

In 2005 Defence Attaché’s Office (DAO) was established in the High Commission of the Republic of Maldives in India by making Lieutenant-Colonel Abdulla Shamaal as first defence attaché. This was the Maldives’ Defence Attaché’s office set up abroad. Given, that defence relations is a major component of the Indo-Maldives bilateral relations and both counties have a long record of strengthening their defence ties through a wide range of activities, such as Military Joint Exercises, exchange of visits of senior officers of the Armed forces, training of large number of defence services personnel from the Maldives at Indian defence establishments, provision of military aid, and intelligence and information sharing, the necessity for a DAO was felt.

Cultural

Both the countries share long cultural links and continuous efforts are underway to further strengthen these links. Recently three historical mosques in Maldives were successfully restored by Indian experts from NRLCCP, Lucknow (Friday Mosque, Male’, Fenfushi Mosque in South Ari Atoll and the Dharumavantha Rasgefaanu Mosque in Male’). Exchange of culturaltroupes takes place regularly between the two counties. In December 2009, a Maldivian Rock Band participated in the South Asian Bands Festival in New Delhi in March 2010. A Maldivian Theatre group travelled to India under the sponsorship of ICCR to perform at the South Asian Theatre Festival, New Delhi. From July to September 2010, the High Commission of India in cooperation with the Ministry of Tourism and Culture [GOM] and India Club organized the India-Maldives Friendship Festival [INMAFF] and the inaugural ceremony in Male’ was attended by then President Nasheed and senior members of his cabinet. Bollywood star Salman Khan was the Special Guest in the ceremony.

Indian Community

Indians are the second largest expatriate community in the Maldives with a total strength of around 28000. The Indian expatriate community consists of doctors, nurses and technicians, teachers, construction workers, tailors, etc. spread all over the country. Of the country’s approximately 400 doctors, over 125 are Indians. Similarly around 25% of teachers in Maldives are Indians, mostly at middle and senior levels.

Maldives is a nascent democracy and is in the process of strengthening its institutions and capacity building. India remains committed to assist the Government and people of Maldives in their endeavors to build a stable, democratic, peaceful and prosperous country. In this context, India is actively engaged with all stakeholders in the reconciliation process in the wake of recent developments, in order to ensure that they continue to take the democratic process forward.