UPSC International relation

India Maldives Bilateral Relations Enhanced Connectivity And Strategic Importance

April 29, 2025
5 min read
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In 2019, India and Maldives deepened their bilateral relations through initiatives designed to boost connectivity and provide economic assistance. India announced several measures to help the Maldives address the economic consequences of the COVID-19 pandemic, including an 'air bubble agreement' to facilitate travel, a direct ferry service, and a submarine cable to improve telecom connectivity. India also pledged US $500 million for the Greater Male Connectivity Project (GMCP), intended to link Male to the nearby islands of Villingili, Thilafushi, and Gulhifahu, marking the largest civilian infrastructure project in the Maldives.

Furthermore, India extended a US $400 million Line of Credit (LoC) in addition to the previous $800 million LoC from 2018 and provides assistance through High Impact Community Development Projects (HICDPs). Maldives' strategic significance for India stems from its proximity to India's west coast and its location along critical sea lanes in the Indian Ocean. India’s objective to be a 'Net-security provider' in the Indian Ocean region necessitates strong ties with the Maldives, especially considering China's growing presence there since opening its embassy in 2011. India has historically intervened in the Maldives, as demonstrated by 'Operation Cactus' in 1988, and maintains a naval presence since 2009 at the request of the Maldivian government.

India and Maldives: A Deep Dive into Enhanced Connectivity and Strategic Partnership

The year 2019 witnessed a significant upswing in the bilateral relations between India and the Maldives, characterized by a series of strategic initiatives aimed at bolstering connectivity, providing crucial economic assistance, and reinforcing a long-standing security partnership. These developments were largely shaped by the evolving geopolitical landscape in the Indian Ocean region, the intensifying strategic competition, and the urgent need to mitigate the economic fallout from the COVID-19 pandemic. India's proactive engagement with the Maldives underscores its commitment to its 'Neighborhood First' policy and its ambition to be a net security provider in the region.

India and Maldives: A Deep Dive into Enhanced Connectivity and Strategic Partnership

Strategic Location and Historical Ties

The Maldives, an archipelago of nearly 1,200 islands located southwest of India, holds immense strategic importance due to its geographical location. Situated along vital sea lanes of communication (SLOCs) in the Indian Ocean, the Maldives controls access to critical trade routes that are essential for global commerce, including a significant portion of India's own trade. These sea lanes connect the East and the West, facilitating the movement of goods, energy resources, and other vital commodities. The security and stability of the Maldives are therefore of paramount importance to India's strategic interests.

India's relationship with the Maldives is rooted in historical, cultural, and economic ties that date back centuries. The two nations share close linguistic, religious, and cultural affinities, fostering a sense of shared heritage and common identity. Historically, trade and maritime exchanges have been the cornerstone of their relationship, with Indian merchants and traders playing a significant role in the Maldivian economy. These historical connections have laid a strong foundation for contemporary bilateral cooperation.

India has consistently been a steadfast partner in the Maldives' development journey, providing assistance in various sectors, including infrastructure, education, healthcare, and human resource development. India has also played a crucial role in ensuring the Maldives' security and stability, as demonstrated by its timely intervention during the 1988 coup attempt, codenamed "Operation Cactus."

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Operation Cactus: A Defining Moment

In November 1988, a group of armed mercenaries, backed by a Maldivian businessman, attempted to overthrow the government of then-President Maumoon Abdul Gayoom. The mercenaries, belonging to a Sri Lankan Tamil militant group called the People's Liberation Organisation of Tamil Eelam (PLOTE), launched a surprise attack on Male, the capital of the Maldives. President Gayoom sought assistance from various countries, including India, to quell the coup attempt.

Responding swiftly to the Maldivian government's request, India launched "Operation Cactus," deploying its armed forces to restore order and protect the democratically elected government. Within hours, Indian paratroopers landed in Male and engaged the mercenaries in combat. The Indian forces successfully neutralized the threat, rescued President Gayoom, and restored normalcy to the Maldives.

"Operation Cactus" was a defining moment in India-Maldives relations, showcasing India's commitment to the security and stability of its neighbor. The operation demonstrated India's willingness to act decisively to protect the Maldives from external threats and uphold democratic principles. It also solidified India's image as a reliable and responsible security partner in the Indian Ocean region.

Evolving Geopolitical Landscape

In recent years, the geopolitical landscape in the Indian Ocean region has undergone significant changes, driven by the rise of China and its growing presence in the region. China's increasing economic and military influence has raised concerns among India and other regional powers, who fear that China's assertiveness could undermine regional stability and challenge the existing security architecture.

China has been actively pursuing its strategic interests in the Indian Ocean region through its "Belt and Road Initiative" (BRI), a massive infrastructure development project that aims to connect China with the rest of the world through a network of roads, railways, ports, and other infrastructure projects. The BRI has provided China with opportunities to expand its economic and political influence in the region, including in the Maldives.

China's engagement with the Maldives has primarily focused on infrastructure development, tourism, and trade. China has invested heavily in infrastructure projects in the Maldives, including the construction of roads, bridges, and ports. These projects have helped to improve the Maldives' infrastructure and boost its economy. However, they have also raised concerns about the Maldives' growing dependence on China and the potential for debt traps.

The opening of the Chinese embassy in Male in 2011 marked a significant shift in the geopolitical dynamics of the Maldives. It symbolized China's growing interest in the Maldives and its determination to play a more active role in the country's affairs. The Chinese embassy has since become a hub for China's diplomatic, economic, and cultural activities in the Maldives.

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India's Response: Strengthening Ties and Countering Influence

India has responded to China's growing presence in the Maldives by strengthening its own ties with the island nation and intensifying its engagement in various sectors. India has recognized the strategic importance of the Maldives and has taken steps to counter China's influence in the country.

India's approach to the Maldives has been guided by its "Neighborhood First" policy, which prioritizes building strong relationships with its neighbors and promoting regional cooperation. Under this policy, India has provided substantial economic assistance to the Maldives, supported its infrastructure development, and enhanced its security cooperation.

In 2019, India announced a series of new initiatives aimed at further strengthening its ties with the Maldives and mitigating the economic impact of the COVID-19 pandemic. These initiatives included:

  • Air Bubble Agreement: An air bubble agreement is a temporary arrangement between two countries to resume passenger flights when regular international flights are suspended. India and the Maldives signed an air bubble agreement in 2020 to facilitate travel between the two countries during the COVID-19 pandemic. This agreement allowed citizens and residents of both countries to travel to and from each other for essential purposes, such as business, education, and medical treatment.

  • Direct Ferry Service: India and the Maldives have been discussing the possibility of establishing a direct ferry service between the two countries for several years. The proposed ferry service would connect Kochi in India with Male in the Maldives, providing a convenient and affordable mode of transportation for passengers and cargo. The ferry service is expected to boost tourism, trade, and people-to-people exchanges between the two countries.

  • Submarine Cable Project: India and the Maldives are jointly undertaking a submarine cable project to enhance telecom connectivity between the two countries. The project involves laying a submarine cable between Kochi in India and Male in the Maldives, which will provide high-speed internet access and improve telecommunications services in the Maldives. The submarine cable project is expected to boost the Maldives' digital economy and facilitate its integration into the global information network.

  • Greater Male Connectivity Project (GMCP): The Greater Male Connectivity Project (GMCP) is a massive infrastructure project that aims to connect Male, the capital of the Maldives, with the neighboring islands of Villingili, Thilafushi, and Gulhifahu. The project involves the construction of a series of bridges and causeways that will link the four islands, creating a new economic hub and easing congestion in Male. India has committed US $500 million in assistance for the GMCP, making it the largest civilian infrastructure project in the Maldives.

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  • Line of Credit (LoC): India has extended a US $400 million Line of Credit (LoC) to the Maldives, in addition to the previous $800 million LoC from 2018. The LoC will provide financial assistance to the Maldives for development projects and economic stability. The Maldives can use the LoC to finance projects in various sectors, such as infrastructure, renewable energy, and tourism.

  • High Impact Community Development Projects (HICDPs): India has been supporting High Impact Community Development Projects (HICDPs) in the Maldives, focusing on livelihood, health, education, and sustainable development. These projects are designed to improve the quality of life and promote sustainable development in local communities. The HICDPs are implemented in partnership with local communities and are tailored to their specific needs and priorities.

Analyzing Key Initiatives

The initiatives undertaken by India to strengthen its relationship with the Maldives in 2019 are multifaceted and strategically significant. They are designed to address both the immediate challenges posed by the COVID-19 pandemic and the long-term strategic interests of both countries.

  • Air Bubble Agreement: The air bubble agreement was a crucial step in facilitating travel and economic activity between India and the Maldives during the COVID-19 pandemic. With regular international flights suspended, the air bubble agreement provided a safe and reliable way for people to travel between the two countries for essential purposes. This helped to maintain economic ties, facilitate business travel, and allow people to seek medical treatment in either country.

  • Direct Ferry Service: The proposed direct ferry service between India and the Maldives has the potential to significantly boost tourism, trade, and people-to-people exchanges between the two countries. The ferry service would provide a convenient and affordable mode of transportation for passengers and cargo, making it easier for people to travel between the two countries and for businesses to trade with each other. This could lead to increased economic activity and closer cultural ties between India and the Maldives.

  • Submarine Cable Project: The submarine cable project is a critical infrastructure project that will significantly improve telecom connectivity in the Maldives. High-speed internet access is essential for economic development in the 21st century, and the submarine cable project will provide the Maldives with the connectivity it needs to compete in the global economy. The project will also improve telecommunications services in the Maldives, making it easier for people to communicate with each other and access information.

  • Greater Male Connectivity Project (GMCP): The GMCP is a transformative infrastructure project that will reshape the landscape of the Maldives. By connecting Male with the neighboring islands of Villingili, Thilafushi, and Gulhifahu, the project will create a new economic hub and ease congestion in Male. The GMCP will also improve transportation links between the islands, making it easier for people to travel and for businesses to operate. This could lead to increased economic growth and improved living standards in the Maldives.

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  • Line of Credit (LoC): The Line of Credit (LoC) is a valuable financial resource for the Maldives, providing the country with access to funds for development projects and economic stability. The Maldives can use the LoC to finance projects in various sectors, such as infrastructure, renewable energy, and tourism. This will help the Maldives to diversify its economy, create jobs, and improve the quality of life for its citizens.

  • High Impact Community Development Projects (HICDPs): The HICDPs are a targeted approach to development assistance, focusing on projects that have a high level of community impact and participation. These projects are designed to improve the quality of life and promote sustainable development in local communities. By focusing on livelihood, health, education, and sustainable development, the HICDPs are helping to build a more resilient and prosperous Maldives.

Analyzing Key Initiatives

India's Role as a Net Security Provider

India's ambition to be a "net security provider" in the Indian Ocean region is a key driver of its engagement with the Maldives. As a major regional power with a strong military and a growing economy, India is well-positioned to play a leading role in ensuring the security and stability of the Indian Ocean region.

India's role as a net security provider is based on the following principles:

  • Respect for Sovereignty: India respects the sovereignty and territorial integrity of all countries in the Indian Ocean region. India does not seek to interfere in the internal affairs of other countries and is committed to resolving disputes peacefully.

  • Non-Intervention: India adheres to a policy of non-intervention in the internal affairs of other countries. However, India is willing to provide assistance to countries that request it, particularly in cases where their security and stability are threatened.

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  • Capacity Building: India is committed to helping other countries in the Indian Ocean region build their own security capacity. India provides training, equipment, and other forms of assistance to help these countries strengthen their armed forces and law enforcement agencies.

  • Cooperative Security: India believes that security in the Indian Ocean region is best achieved through cooperation and collaboration. India works with other countries in the region to address common security challenges, such as piracy, terrorism, and maritime security.

India's engagement with the Maldives is a key component of its strategy to be a net security provider in the Indian Ocean region. By providing security assistance to the Maldives and working together to address common security challenges, India is helping to ensure the security and stability of the region.

Stakeholder Perspectives

Understanding the perspectives of the key stakeholders involved in India-Maldives relations is crucial for a comprehensive analysis of the issue.

  • India: India views the Maldives as a strategic partner and a key component of its "Neighborhood First" policy. India is committed to supporting the Maldives' economic development and security and is working to counter China's influence in the country. India's underlying interests include maintaining regional influence, ensuring the security of sea lanes, and promoting regional stability.

  • Maldives: The Maldives seeks economic assistance and security cooperation from India. The Maldives recognizes India as a reliable partner and values its support for its economic development and security. However, the Maldives also seeks to maintain its sovereignty and independence and is wary of becoming overly dependent on any one country. The Maldives' underlying interests include economic development, infrastructure improvement, and maintaining sovereignty and security.

  • China: China views the Maldives as an important part of its "Belt and Road Initiative" and is seeking to expand its economic and political influence in the country. China is investing heavily in infrastructure projects in the Maldives and is providing loans and grants to the Maldivian government. China's underlying interests include expanding its influence in the Indian Ocean region, securing access to resources and markets, and promoting its strategic interests.

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Broader Implications

The enhanced connectivity and strategic partnership between India and the Maldives have broader implications for the region and the world.

  • Political: The strengthening of bilateral relations between India and the Maldives has the potential to increase political cooperation between the two countries. This could lead to closer coordination on regional and international issues and a stronger voice for both countries in international forums.

  • Diplomatic: The reinforcement of India's position as a key partner for the Maldives is a significant diplomatic achievement. This helps to counter China's influence in the region and strengthens India's relationships with other countries in the Indian Ocean region.

  • Security: Enhanced security cooperation between India and the Maldives contributes to regional stability. This cooperation can help to address common security challenges, such as piracy, terrorism, and maritime security.

  • Economic: Increased economic activity, infrastructure development, and improved livelihoods in the Maldives are all positive economic outcomes of the enhanced connectivity and strategic partnership between India and the Maldives. This can lead to greater prosperity and stability in the Maldives.

  • Technological: Improved telecom connectivity through the submarine cable project is a significant technological advancement for the Maldives. This will help to boost the Maldives' digital economy and facilitate its integration into the global information network.

Broader Implications

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Ongoing Issues and Future Outlook

Several related ongoing issues and historical connections provide context for understanding the current state of India-Maldives relations and its future trajectory.

  • India-China Competition in the Indian Ocean Region: The competition between India and China for influence in the Indian Ocean region is a key factor shaping India-Maldives relations. India is working to counter China's growing presence in the Maldives and maintain its own strategic interests in the region.

  • India's "Neighborhood First" Policy: India's "Neighborhood First" policy is a key driver of its engagement with the Maldives. This policy prioritizes building strong relationships with India's neighbors and promoting regional cooperation.

  • The Economic Impact of the COVID-19 Pandemic on Small Island Developing States: The COVID-19 pandemic has had a devastating impact on the economies of small island developing states like the Maldives. India's assistance to the Maldives is helping to mitigate the economic impact of the pandemic and support the country's recovery.

  • India's Intervention in the 1988 Coup Attempt in the Maldives: India's intervention in the 1988 coup attempt in the Maldives is a historical precedent that demonstrates India's commitment to the security and stability of the Maldives.

  • Historical Trade and Cultural Links Between India and the Maldives: The historical trade and cultural links between India and the Maldives provide a strong foundation for contemporary bilateral cooperation.

Looking ahead, the future outlook for India-Maldives relations is positive. Continued strengthening of ties, increased focus on economic development and security cooperation, and ongoing efforts to counter Chinese influence in the region are all likely to shape the relationship in the years to come. India's commitment to its "Neighborhood First" policy and its ambition to be a net security provider in the Indian Ocean region will continue to drive its engagement with the Maldives. The Maldives, in turn, is likely to continue seeking economic assistance and security cooperation from India while also seeking to maintain its sovereignty and independence. The evolving geopolitical landscape in the Indian Ocean region will continue to present both challenges and opportunities for India-Maldives relations. The two countries will need to work together to address these challenges and capitalize on these opportunities to ensure a secure and prosperous future for both nations.

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Ongoing Issues and Future Outlook

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