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India – Maldives bilateral relations

India – Maldives bilateral relations

Introduction

India-Maldives relations refer to the bilateral relations between India and Maldives. India and Maldives are neighbors sharing a maritime border. Relations have been friendly and close in strategic, economic and military cooperation. India continues to contribute to maintaining security on the island nation.

Bilateral treaties and Strategic Partnership

1976 Maritime treaty

In December 1976, India and the Maldives signed a maritime boundary treaty to agree on maritime boundaries. Treaty explicitly places Minicoy on the Indian side of the boundary. India and Maldives officially and amicably decided their maritime boundary in 1976, a minor diplomatic incident occurred in 1982 when the brother of the President of Maldives Maumoon Abdul Gayoom gave a speech that India mistook as a claim that the neighboring Minicoy Island that belonged to India were a part of Maldives; Maldives rapidly officially denied that it was laying claim to the island and explained that President Maumoon’s brother had in fact been talking about the cultural connections between Maldives and Minicoy.

1981 Comprehensive trade agreement

In 1981, India and Maldives signed a comprehensive trade agreement. Both the nations are founding members of the South Asian Association for Regional Cooperation (SAARC), the South Asian Economic Union and signatories to the South Asia Free Trade Agreement. Indian and Maldivian leaders have maintained high-level contacts and consultations on regional issues.

Commercial relations

Since the success of Operation Cactus, the relations between India and Maldives have expanded significantly. India has provided extensive economic aid and has participated in bilateral programmes for the development of infrastructure, health, telecommunications and labour resources. It established the Indira Gandhi Memorial Hospital in Malé, the capital of Maldives, expanded telecommunications and air links and increased scholarships for Maldivian students. While India’s exports to Maldives during 2006 were worth ₹384 crore, imports were worth less than ₹6 crore. The State Bank of India has contributed more than US$500 million to aid the economic expansion of Maldives. India and Maldives have announced plans to jointly work to expand fisheries and tuna processing.

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