RELATIONS BETWEEN INDIA AND MALDIVES

This rough draft is submitted in the partial fulfilment of project in International Business.

Submitted to: Submitted by:

Dr Md Safiullah Aarya Gurjar,(2801)
B.B.A.,LL.B (Hons.)

February,2023
Chanakya National Law University, Patna

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 INTRODUCTION
India and Maldives are neighbours sharing a maritime border. India and Maldives share
ethnic, linguistic, cultural, religious and commercial links steeped in antiquity and enjoy
close, cordial and multi-dimensional relations. India and Maldives have consistently
supported each other in multilateral fora such as the UN, the Commonwealth, the NAM and
the SAARC.1 India’s prompt assistance during the 1988 coup attempt, led to development of
trust and long-term and friendly bilateral relations with the Maldives. India’s swift dispatch
of 30,000 doses of measles vaccine in Jan 2020 to prevent an outbreak in the Maldives, and
India’s rapid and comprehensive assistance to the Maldives since the COVID-19 pandemic
began has further improved India’s relations with that of Maldives. Maldives also ensures the
uninterrupted supply of energy to India. More than 97% of India’s international trade by
volume passes through this region. Good and harmonious relations between India and
Maldives are helping in the economic development of both. On his first overseas visit after
assuming office, President Solih paid a ‘State Visit’ to India in Dec 2018, during which India
announced a financial assistance package of US$ 1.4 billion which included US$ 50 million
as budgetary support to Govt of Maldives, subscription by SBI to the Govt of Maldives’s
Treasury bills of US$ 150 million, the Currency Swap Agreement for US$ 400 million and 8
infrastructure Projects under the US$ 800 million Line of Credit (LoC). LoC infrastructure
projects have started rolling out with two projects already under execution (Water &
Sanitation on 34 islands and Addu Roads projects) while third project i.e., Addu Land
Reclamation Project was awarded in March 2022 and the implementation is due to begin
soon. Wherever possible, India has been offering assistance to Maldives in its developmental
process. The major projects executed by India are:  Indira Gandhi Memorial Hospital 
Faculty of Engineering Technology  Technology Adoption Programme in Education Sector
in Maldives  Faculty of Hospitality & Tourism Studies (nearing completion) Capacity
building and skills development is one of the key components of Government of India’s
assistance to Maldives.2

1
See, available at https://mea.gov.in/portal/foreignrelation/india-maldives_relations.pdf last accessed on January
20 2023
2
See, available at https://hci.gov.in/male/?17555?000 last accessed on January 20 2023

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STATEMENT OF PROBLEM

While India-Maldives relations have always been close, cordial and multi-dimensional,
recent regime instability in the Maldives has posed some limitations, especially in the
political & strategic arena. Therefore, the main challenge to India’s diplomacy is balancing
out all these contradictions into harmonious relations.

RESEARCH OBJECTIVES

o To understand the strategic, defence, trade and economic relations between India and
Maldives.
o To understand the threats to India-Maldives relations in the coming time.

RESEARCH QUESTIONS

1. What is the strategic and economic importance of India-Maldives relations?

2. What are the challenges faced by India and Maldives in their relations?

HYPOTHESIS

Maldives has been and is expected to be one of the important trade partners of India and also
in terms of developing bilateral relations for any further development.

SCOPE AND LIMITATIONS OF THE STUDY

The scope of research is to study the trade relations of India and Maldives in various areas.
The limitation of the research is that the researcher will be studying only some of these areas
such as defence, economic ties, bilateral relations etc.

RESEARCH METHODOLOGY

The researcher will be relying on Doctrinal method of research to complete the project. The
doctrinal method helps in doing a comparative study of the topic. These include various
primary and secondary sources of literature and insights.

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MODE OF CITATION

The mode of citation used is Bluebook 20th Edition.

TENTATIVE CHAPTERISATION

 Introduction
 Bilateral relations and strategic partnership
 Economic and commercial relations
 India-Maldives relations during Covid Pandemic
 Challenges or threats to India Maldives relations
 Conclusion
 Suggestions
 Bibliography