India-Maldives Bilateral Relations
India and Maldives share ethnic, linguistic, cultural, religious and commercial links steeped
in antiquity. India was among the first to recognize Maldives after its independence in 1965 and to
establish diplomatic relations with the country.
2. Maldives’ proximity to the west coast of India (barely 70 nautical miles away from Minicoy
and 300 nautical miles away from India’s West coast), and its situation at the hub of commercial
sea-lanes running through Indian Ocean (particularly the N & 1 ½° N channels) imbues it with
significant strategic importance to India.
3. Maldives occupies a special place under “Neighbourhood First” Foreign Policy of India,
which aims to bring stability and prosperity in the Indian Ocean Region (IOR). Also, both the
nations are key players in maintaining safety and security of the IOR, thus contributing to India-led
Security And Growth for All in the Region (SAGAR) vision.
4. The one-time claim of Maldives to Minicoy Island was resolved by the Maritime Boundary
Treaty of 1976 between the two countries, whereby Maldives has recognized Minicoy as an integral
part of India.
5. India’s prompt assistance during the 1988 coup attempt, led to development of trust and
long-term and friendly bilateral relations with the Maldives. The immediate withdrawal of our
troops when they were no longer required assuaged fears of any Indian dominance or territorial
aspirations.
6. India was also the first to assist Maldives during the 2004 Tsunami as well as the water
crisis in Malé in Dec 2014. These three incidents have reinforced India’s credentials of being the
“first responder”.
High level exchanges in past few years
7. Prime Minister Narendra Modi attended the inauguration ceremony of H.E. President
Ibrahim Mohamed Solih on 17 Nov 2018 as the only Head of State / Head of Government. He also
held bilateral discussions with H.E. President Solih just after his swearing-in ceremony, in which he
conveyed India’s desire to work closely for the realization of Maldives’ developmental priorities,
esp in areas of infrastructure, health care, connectivity and HRD.
8. Foreign Minister Abdulla Shahid paid an Official Visit to India in Nov 2018.
9. On his first overseas visit after assuming office, H.E. President Solih paid a ‘State Visit’ to
India in Dec 2018, during which India announced a financial assistance package of USD 1.4 bn
which included USD 50 mn as budgetary support to GoM, subscription by SBI to the GoM’s T-bills
of USD 150 mn, Currency Swap Agreement for USD 400 mn and 8 infra Projects under the USD 800
mn Line of Credit (LoC). India also offered additional 1000 training slots over the next 5 years.
10. Defence Minister Mariya Didi visited India in Jan 2019, during which the 2
nd
Defence
Cooperation Dialogue was held. She visited India on several occasions including for DEFEXPO in
Feb 2020, IOR DM’s conclave in Bangalore in Feb 2021 & INA Kochi as Chief Guest at Passing-out-
Parade in Nov 2021 and Defence Expo in Oct 2022.
11. Former EAM Late Smt. Sushma Swaraj visited Maldives in March 2019. Several agreements
including LoC Agreement for USD 800 mn & MoU for grant assistance for High Impact Community
Development Projects (HICDPs) was also signed during the visit. India also gifted 2500 LED street
lights and 2,00,000 LED bulbs to Malé City Council. EAM also announced the grant of INR 500
million to Maldives for 18 bilateral projects related to the socio-economic development.
12. PM Modi visited Maldives on a State Visit in June 2019. PM also addressed a session of the
newly constituted People’s Majlis. Various MoUs were also signed in the field of Hydrography,
Health, establishment of Passenger-cum-Cargo service by sea, cooperation in Customs’ capacity
building, Civil Servants trainings and exchange of White Shipping Information between IN &
Maldivian National Defence Force (MNDF). Both the leaders jointly inaugurated MNDF’s Composite
Training Centre (CTC) facility in Maafilafushi and Coastal Radar System (CRS) by remote links. Both
sides agreed for resumption of the Colombo Security Conclave (CSC), a trilateral mechanism (India-
Maldives-Sri Lanka) on marine security and constitution of a JWG on Counter Terrorism. PM also
announced supporting restoration of Hukuru Miskiiy in Malé.
13. Chief of Defence Force of MNDF Major General Abdulla Shamaal visited India in July 2019.
In Feb 2021, CDF visited Bengaluru for AERO India. In July 2022, CDF undertook official visit to India
where he met Chiefs of Army, Airforce & Navy besides graced and reviewed, as Chief Guest, POP at
OTA Chennai.
14. EAM visited Maldives in Sept 2019 to participate in 4
th
Indian Ocean Conference. During the
visit, an Agreement on Mutual Legal Assistance in Criminal Matters was signed.
15. The 6
th
Joint Commission Meeting (JCM) was held in New Delhi in Dec 2019. EAM Dr S
Jaishankar and Foreign Minister Shahid co-chaired the JCM which undertook a comprehensive
review of the bilateral agenda and charted a way forward. The two Ministers also witnessed the
exchange of Instrument of Ratification of Treaty on Mutual Legal Assistance in Criminal Matters
and signing of the MoUs between the Financial Intelligence Units (FIUs) of Maldives and India, and
between Elections Commission of Maldives and Election Commission of India.
16. At a Video Conference held between PM and H.E. President Solih on Dec 4, 2019, 4 projects
were highlighted viz. gifting of street lights to Male; operationalising of RuPay Card in the Maldives;
signing of MoUs for Indian grant assistance to set up 3 fish processing plants in Addu under
HICDPs scheme & gifting of CGS Kaamyaab to the MNDF.
17. PM Modi and H.E. President Solih had telephonic conversations in April 2020 and July 2021
to discuss the COVID19 pandemic situation and India’s developmental assistance to the Maldives.
18. A virtual meeting between EAM and Foreign Minister Shahid was held on Aug 13, 2020. The
launch of cargo vessel service between India and the Maldives, the setting up of the air travel
bubble, India’s support for the Greater Male Connectivity Project (GMCP) with a USD 400 million
LoC & USD 100 million grant, renewal of essential commodities trade agreement, and, financial
assistance of USD 250 million for budget support to the GoM were announced.
19. Foreign Secretary Harsh Vardhan Shringla visited the Maldives in Nov 2020. During his visit,
an MoU on Sports & Youth Affairs was signed during the visit along with two MoUs for HICDPs. FS
handed over equipment to set up 67 children’s parks across the Maldives. FS also announced
India’s support to Foreign Minister Shahid for the latter’s candidacy for the post of UNGA President
in 2022.
20. EAM visited the Maldives in Feb 2021. During the visit, the UTF Agreement to develop a
harbour for the MNDF, and a USD 50 million LoC for the MNDF were also signed. EAM gifted
100,000 doses of COVISHIELD vaccines to the Maldives. EAM also announced a USD 40 million LoC
for sports infrastructure for the Maldives. AFCONS signed the contract for the EXIM Bank of India
supported Addu Roads LoC project during the visit.
21. Foreign Minister Shahid visited India in April 2021 and July 2021 (as UNGA President).
Revised MoU for HICDPs increasing outlay to MVR 155 mn was signed during the latter visit.
22. EAM visited Addu City in Maldives in March 2022. Several agreements were signed in areas
of extending National Knowledge Network of India (NKN) to Maldives, capacity building &
cooperation between Police Academies, reciprocal recognition of Covid vaccination certificate, and
signing of Contract for Addu Reclamation Project, etc. During the visit, ground-breaking of the
Addu Roads Project and Handing-Over of the CRS to the MNDF was also organised besides
inauguration of National College for Police and Law Enforcement (NCPLE), Drug Detoxification and
Rehabilitation Centre, Hulhudhoo and Eco-Tourism Zone, Meedhoo.
23. H.E. President Solih paid an Official Visit to India from 1-4 Aug 2022. He was accompanied
by key Ministers and a business delegation. H.E. President Solih had official talks with Prime
Minister Modi. He also met with President of India, Smt. Droupadi Murmu. H.E. President Solih and
PM Modi jointly launched 'first-pouring of concrete for the GMCP'; reviewed progress on
construction of 4000 Social Housing Units in Hulhumale' under Buyers' Credit and other ongoing
bilateral projects. Several agreements were signed in areas of Cybersecurity, Disaster
Management, fisheries, Capacity Building of Local Govt representatives. Key announcements made
during the visit included i) Extension of USD 100 mn Line of Credit to finance infrastructure
projects in Maldives ii) Facilitation of duty free tuna exports to India from Maldives iii) Gifting of
replacement ship for the earlier provided ship-CGS Huravee -to MNDF iv) Supply of the second
Landing Craft Assault (LCA) v) Gifting of 24 utility vehicles to MNDF. H.E. President Solih
participated in India-Maldives Business forums held in Delhi and Mumbai. H.E. President Solih also
visited Jawaharlal Nehru Port Trust (JNPT), Bombay Stock Exchange (BSE) & Mumbai Film City.
24. Foreign Minister Abdulla Shahid paid an official visit to India as President UNGA in August
2022. During the visit, he met FS, EAM and called on Vice President. He also visited India in March
2023 to attend the 8th edition of the Raisina Dialogue.
25. Foreign Secretary Vinay Mohan Kwatra visited Maldives in October 2022. During the visit,
besides reviewing the bilateral partnership with his Maldivian counterpart and other meetings, FS
also witnessed exchange of the USD 100 mn supplementary LoC and handing over of a vessel
procured through grant support to the Maldives Correctional Services. FS also symbolically handed
over 24 utility vehicles to MNDF.
26. EAM Dr. S. Jaishakar visited Northern Atolls of Maldives in January 2023. EAM witnessed
exchange of several agreements viz. (i) MoU for additional grant assistance of MVR 100 million for
the HICDPs scheme, (ii) MoU between Maldives National University and Cochin University of
Science & Technology on capacity building to facilitate exchanges and co-operative initiative in the
area of education, research, development instruction, community service, staff and student
exchanges & (iii) MoU for development of a sports complex in GDh Gadhdhoo. Also witnessed the
handover of two sea ambulances to the Ministry of Defence of Maldives, a project carried out
under the HICDP Scheme. Jointly inaugurated Foakaidhoo Community Centre facilitated under
Indian grant assistance. Also attended the ground breaking ceremony of Hanimaadhoo
International Airport Development Project, being constructed under the Indian LoC. In addition,
EAM also witnessed the signing of agreement to develop the MIFCO Felivaru Cold Storage Complex
under the Indian LoC.
27. Defence Minister Rajnath Singh visited Maldives on an official visit in May 2023. During his
visit, besides various calls on and meetings, DM attended the ceremony for the commissioning of
the replacement ship for Huravee, in the presence of the H.E. President Solih. He also gifted MNDF
an additional Landing Craft. Along with Minister Didi also laid the foundation stone for the MNDF
Coast Guard ‘Ekatha Harbour’. Also had Interaction with the members of Indian community in
Maldives.
28. MoS for External Affairs V. Muraleedharan visited Maldives on an official visit in June, 2023.
He participated in the inauguration ceremonies of 03 eco-tourism zones, developed under HICDPs
scheme, in Addu City. Also participated in the Groundbreaking Ceremony of Addu Reclamation
Project and Gan International Airport Development Project, both being funded under GoI’s
concessional LoC. Also witnessed the exchange of 10 MoUs under HICDP Phase-II and handing
over of Anti-TB Medicines to the Maldives’ Ministry of Health. Also had Interaction with the
members of Indian community in Maldives.
29. Foreign Minister Abdulla Shahid visited India on an official visit in July 2023. FM besides
meeting EAM, also delivered 43rd Sapru House Lecture at Indian Council of World Affairs, New
Delhi. Both Ministers also witnessed exchange of 09 HICDPs MoU.
30. Prime Minister Narendra Modi congratulated the new democratically elected H.E. President
of Maldives Dr. Mohamed Muizzu. PM Modi conveyed that “India remains committed to
strengthening the time-tested India-Maldives bilateral relationship and enhancing our overall
cooperation in the Indian Ocean Region”.
31. Minister of the Earth Sciences Kiren Rijiju represented India at H.E. President Muizzu’s
swearing in ceremony of ceremony. During the visit, Hon’ble Minister also called on President Solih
and President Dr. Muizzu. Minister also reviewed the progress of various India-supported
development projects being implemented in Greater Male’ Region. Also had Interaction with
members of Indian community in Maldives.
32. On 1
st
Dec 2023, on the sidelines of COP-28 Summit in the UAE, PM Modi and H.E. President
Dr. Muizzu met. Both leaders reviewed the wide ranging bilateral relations including people-to-
people linkages, development cooperation, economic relations, climate change and sports. Both
the leaders also discussed ways to further deepen their partnership. In this regard, they agreed to
set up a core group. 04 meetings of High Level Core Gp have been held so far.
33. In Jan 2024, H.E. Foreign Minister Moosa Zameer and EAM Dr. S. Jaishankar met on the
sidelines of the Ministerial Meeting of the NAM in Kampala, Uganda. Later, in May 2024, H.E.
Foreign Minister Moosa Zameer paid first official visit to India and met EAM Dr. S Jaishankar and
discussed bilateral and regional issues of mutual interest.
34. In June 2024, H.E. President Dr. Muizzu alongwith his senior delegation visited India to
participate in the swearing-in ceremony of PM Modi and the Council of Ministers. Following the
swearing-in ceremony, both leaders met. H.E. President Dr. Muizzu also attended a Banquet hosted
by President Smt. Droupadi Murmu at Rashtrapati Bhavan. On 10
th
June, H.E. President Dr. Muizzu
met President of India. Also, EAM Dr S. Jaishankar called on H.E. President Dr. Muizzu.
Security & Defence Cooperation:
35. Since 1988, defence and security has been a major area of cooperation between India and
Maldives. India has adopted a very flexible and accommodating approach in meeting Maldivian
requirements of defence training and equipment. A comprehensive Action Plan for Defence was
also signed in April 2016 to consolidate defence partnership.
36. Capacity Building/Training. India provides the largest number of training opportunities
for Maldivian National Defence Force (MNDF), meeting around 70% of their defence training
requirements. India has trained over 1500 MNDF trainees over the past 10 years. MNDF officers
have been trained in various defence academies in India viz. NDA, IMA, OTA, INA, AFMC, etc. MNDF
has also been participating in various joint activities with Indian Defence forces such as joint EEZ
patrols, joint exercises, anti-narco ops, SAR, sea-rider prog, HADR exercises, sailing regatta, etc.
Indian Navy has also provided MNDF with air assets for air surveillance, MEDEVAC, SAR, Helo-
borne vertical insertion capability. Around 600 MEDVACs, SAR operations and medical teams
transfers have been conducted since 2019. Besides providing medical equipments, a team of
Medical Specialists has been serving Maldivians at MNDF’s Senahiya Hospital, Male’ and are sharing
expertise with MNDF doctors. Many MNDF doctors have / are being trained at AFMC, Pune.
37. India-Maldives Defence Cooperation also extends to the areas of Joint Exercises, Maritime
Domain Awareness, gifting of hardware, infrastructure development, etc. Key projects in the
defence sector includes Composite Training Centre (CTC) for MNDF, Coastal Radar System (CRS),
construction of new Ministry of Defence Headquarters and construction of “Ektha” MNDF harbour.
38. Institutional Mechanisms. Annual Defence Cooperation Dialogue at level of Defence
Secretary was initiated in July 2016 with 2
nd
edition held in Nov 2017. After a brief hiatus due to
COVID19 pandemic, the 3
rd
edition of DCD was conducted at Male on 14 Feb 2022. 04 DCD was
conducted in March 2023. Annual Joint Staff Talks were started in Feb 2016 and 6th edition was
conducted in Dec 2022. MNDF continues to participate in various fora such as IONS, Goa Maritime
Conclave and Goa Symposium. There are presently 3 major joint exercises – bilateral i.e. “Ekuverin”
and “Ekatha” and trilateral i.e. “Dosti” (incl Srilanka). which are held regularly at dates decided in
mutual consultations. Most recently, in Feb 2024, the trilateral exercise “Dosti” was held in Male’,
with Bangladesh as observer.
39. Disaster Management. MNDF regularly participates in Humanitarian Assistance & Disaster
Relief, Search & Rescue (SAR), Pollution Control, other exercises organised by India. India
previously provided pollution dispersant to MNDF Coast Guard in 2016. India is also undertaking
customised trainings for MNDF Fire and Rescue Service in India.
40. Development Cooperation
The major completed and ongoing development assistance projects executed by India are:
Indira Gandhi Memorial Hospital. The hospital was built with Indian Grant Assistance in
1995. Major renovation of IGMH funded by GoI was completed in June 2017 at a cost of
INR 52 Cr. Late EAM Smt Sushma Swaraj dedicated the renovation of IGMH to the people of
Maldives during her visit to Malé on 17-18 March 2019.
Maldives Institute of Technical Education (now called the Maldives Polytechnic): The
MoU for setting up Maldives Institute for Technical Education (MITE) was signed in March
1992. MITE was completed at a cost of INR 12 Cr and handed over to GoM in Sept 1996.
India-Maldives Faculty of Hospitality & Tourism Studies: The foundation stone for the
Faculty was jointly laid by Late PM Vajpayee and President Gayoom during the former’s visit
to Maldives in Sept 2002. The Faculty, built with Indian grant assistance of INR 64.5 Crore,
was officially handed over to GoM in Feb 2014.
Technology Adoption Programme in Education Sector in Maldives: The USD 5.3 million
project fully funded by GoI was launched in June 2011 to provide ICT training to Maldivian
teachers and youth and for vocational training. The project concluded in Dec 2013.
National College for Police and Law Enforcement (NCPLE): With GoI grant funding of
INR 222.98 Crore, NCPLE is the single-largest grant project executed by India in the
Maldives. The project was inaugurated by EAM Dr S. Jaishankar during his visit in March
2022.
Bilateral projects under Cash Grant of INR 50 crore (MVR 106.8 million): During the official
visit of EAM to Maldives in 1 March 2019, a cash grant of INR 50 crores (MVR 106.8 million) to
Maldives for important bilateral projects was announced to support the projects related to socio-
economic development, particularly creation of infrastructure in the education, health or
community development sectors. Total 18 projects including building of community / convention
centres, community outdoor gyms & children parks, coastal protection, street lighting, student
ferry between islands, vehicles for city councils, police infrastructure, sports infrastructure,
inclusive education units, school classrooms project, emergency health unit, etc across islands
were taken up for implementation. All of projects have been completed.
High Impact Community Development Projects (HICDPs) under grant: An MoU between India
and Maldives regarding grant assistance of MVR 85 million for implementation of HICDPs through
Local Bodies was signed during EAM’s visit to Maldives in March 2019. The MoU was revised in July
2021 to enlarge the grant assistance to MVR 155 million from MVR 85 million. In January 2023,
MoU for additional grant assistance of MVR 100 million for the HICDPs scheme was signed. A total
of 47 HICDPs have been undertaken, out of which 08 have been completed and inaugurated.
Large Grant Projects: GoI is also supporting restoration of Hukuru Miskiiy (Friday Mosque) in
Malé under Indian Grant of INR 8.95 crores. This was announced by Prime Minister during his
address to the Majlis in June 2019.
Infrastructure & Connectivity Projects under Exim Bank Lines of Credit
US$ 800 million + USD 100 mn Lines of Credit: USD 800 mn LoC agreement between Ministry of
Finance, GoM and EXIM Bank of India was signed in March 2019. A USD 100 supplementary LoC
was signed in Oct 2022. The following projects are being implemented under these LoCs:
Water and Sanitation in 34 Islands: The project seeks to improve water supply and
sewerage facilities in 34 identified islands by installing proper water supply distribution
network, ensuring protection of ground water aquifer and sustainable water source
management. On the basis of tendering process, GoM awarded the project as 6 packages to
4 Indian contractors in March 2021. Many of the projects have been commissioned and
handed over.
Addu Development Project (Roads and Land Reclamation): This is a key infrastructure
project required for Addu to establish itself as the southern regional hub of Maldives. The
scope includes roads, street lighting, storm water drainage, shore protection and land
reclamation for the development of tourism infrastructure. On the basis of tendering
process, the contract was awarded to AFCONS and work is progressing well. On the basis of
tendering process, the contract for the Land Reclamation portion of the project was
awarded to Indian subsidiary of a Dutch company “Van Oord’. Reclamation segment of the
project has been completed.
Expansion of Maldives Industrial Fisheries Company Limited (MIFCO) facilities in
Felivaru and Gemanafushi: MIFCO currently collects 60% of skipjack tuna caught by the
fishermen at a fixed price set by Government. MIFCO has the capacity of adding value to
40% of the collection, while the rest is exported as frozen tuna, resulting in the export of
frozen tuna becoming a loss-making operation, affecting the sustainability of the company.
On the basis of tendering process,, Contract to develop the cold storage facilities in the
MIFCO Felivaru and Gemanafushi was awarded to Rinac India Limited in January 2023.
Work is ongoing.
Airport Redevelopment Projects in Hanimaadhoo and Gan: The EXIM Bank of India is
supporting the redevelopment of airports in Hanimaadhoo and Gan. India funded the DPRs
for both these projects which have been prepared by the Airports Authority of India. On
the basis of tendering process, GoM awarded the contract for Redevelopment of
Hanimaadhoo in September, 2022 to JMC Projects India Pvt Ltd. In Feb 2023, Ministry of
Economic Development, on the basis of tendering process, awarded the contractor to
Renaatus Projects Private Limited of India for development of the Gan International
Airport. The projects are progressing well.
Greater Male Connectivity Project: The project aims to connect Male to Villingili, Gulhifalhu and
Thilafushi islands through a series of bridges, causeways and roads. The project is crucial for the
proposed Gulhifalhu Port, and will be a major catalyst for the Maldivian economy in the future
through jobs and economic activity. It is funded through a separate USD 400 million LoC and USD
100 million grant from India. On the basis of tendering process, GoM awarded the contract to
AFCONS in August 2021. The project is progressing well and is monitored regularly by a Joint
Project Monitoring Committee (JPMC).
USD 50 million Defence Line of Credit was concluded during EAM’s visit to Maldives in Feb 2021.
USD 40 million Sports Line of Credit was extended to the Maldives in Sept 2021 to develop the
sports infrastructure across the islands. In May 2024, GoM has signed a contract with PMC Collage
Design under the Sports LOC. Defence LOCs (USD 50 Mn) remain un-utilized.
Projects under EXIM Bank’s Buyers Credit
Social Housing projects in Hulhumale’ Phase II : On 23 Sept, 2021 EXIM Bank of India
concluded two Agreements with Fahi Dhiriulhun Corporation Ltd (FDC) of Maldives to
extend Buyers Credit of approx. USD 227 million for the construction of 4000 Social
Housing Units (2800 units of 3 bedrooms and 1200 units of 2 bedrooms) in Hulhumale’
Phase II. The construction is being undertaken by National Buildings Construction
Company (NBCC) and JMC Projects (India) Ltd. The project is under implementation.
Road projects: Earlier, EXIM Bank had extended around $53 million in Buyers’ Credit to a
Mohan Mutha- Ashoka Buildcon JV for development of roads in Hulhumale’ Phase I & II.
The project has been completed.
Police Infrastructure Development project: Buyers Credit agreement extending USD 41
million to develop Police Infrastructure in Maldives was signed during H.E. President Solih's
visit. The ground breaking ceremony was held at Thulusdhoo island on 10
th
August 2022.
Bilateral Economic and Trade Relations
41. India and Maldives signed a trade agreement in 1981, which provides for export of
essential commodities. In April 2024, under the same agreement, upon the request of the
Government of Maldives, GoI has allowed for export of certain quantities of essential
commodities for the year 2024-25, wherein, the quotas for each of these items have been
revised upwards. The approved quantities are the highest since this arrangement came into
effect in 1981. Growing from modest beginnings, India-Maldives bilateral trade crossed the USD
300 million mark for the first time in 2021 which further crossed USD 500 million mark in 2022.
Bilateral trade growth is a direct result of the launch of the cargo vessel service between the two
countries in September 2020 and commencement of work of various Lines of Credit (LoC) projects
since February 2021. Implementation of visa-free entry in Feb 2022 for Indians arriving in the
Maldives for business purposes is a further recognition of the growing commercial partnership.
42. India emerged as Maldives’ 2
nd
largest trade partner in 2022 & the largest in 2023
.
Indian
imports from the Maldives primarily comprise scrap metals while Indian exports to the Maldives
include a variety of engineering and industrial products like drugs and pharmaceuticals, radar
apparatus, rock boulders, aggregates, cement and agriculture produce like rice, spices, fruits,
vegetables and poultry produce etc. Efforts are being made to tap the potential of seafood exports
from Maldives to India. In Aug 2022, facilitation of duty free tuna exports to India from Maldives
was announced.
Bilateral trade figures (Jan-Dec, in US$ million)
Year
Total Exports to
Maldives
Total Imports
from Maldives
Total Trade
2013 154.00 12.30 156.30
2014 170.60 2.90 173.50
2015 225.82 3.00 228.82
2016 274.55 1.55 276.10
2017 282.04 4.12 286.16
2018 286.13 3.01 288.14
2019 290.27 3.42 293.69
2020 241.90 3.33 245.23
2021 317.35 5.94 323.29
2022 495.40 6.42 501.82
2023 543.83 5.14 548.97
2024 (till April’24) 185.12 1.62 183.52
(Source: Maldives Customs Service)
43. 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. In November 2022, India in response to a request
from the Government of Maldives, amid the economic challenges faced by the Maldives, handed
over a financial assistance of US$ 100 million. This financial support is through subscription in
Maldives’ Government Domestic T-bonds by SBI, Malè. India has provided a sovereign guarantee to
SBI for this financial assistance. In May 2024, on the special request of Govt of Maldives
seeking budgetary support, SBI Maldives has subscribed for one more year the USD 50 mn
Govt T-bill, at zero-cost (interest free) under a unique G-to-G arrangement.
44. In December 2022, the RBI signed a Currency Swap Agreement with the Maldives
Monetary Authority (MMA) under the SAARC Currency Swap Framework, thus, enabled MMA to
make drawls in multiple tranches up to a maximum of USD 200 million from the RBI.
Tourism
45. The Maldivian economy is heavily dependent on its tourism sector, which is the major
source of foreign exchange earnings and government revenue. Tourism directly accounts for about
quarter of GDP of Maldives and indirectly for a much larger proportion of GDP. In terms of direct
employment, tourism accounts for > 1/3rd of job opportunities for Maldivians and if the allied
sectors are included, the contribution of tourism sector in total employment (direct and indirect)
would rise up to nearly 70%.
46. In 2018, India was 5
th
largest source of tourist arrivals in Maldives with around 6.1% (over
90,474) market share. However, in 2019, India reached the 2
nd
spot with almost double the number
of arrivals compared to the 2018. In a pandemic-hit 2020, India was the largest source market for
the Maldives with nearly 63,000 Indians visited the Maldives. From 2021 to 2023, India continued
as the top tourists market with over 2.91 lakh, 2.41 lakh & 2.09 lakh Indian tourist arrivals and a
23%, 14.4% & 11.1% market share, respectively. Since 2019, more than 1 million Indian tourists
have visited India. In 2024, India with 54,786 tourists arrivals (as on 04 June’24) is the 6th leading
source market for Maldives with a 6% market share. In March 2022, India & Maldives agreed for an
open skies arrangement which will further improve air connectivity between two countries.
Education & Capacity Building
47. India has been a traditional partner for the Maldives in human resource development
across sectors for decades. Several Maldivian youths acquire their higher education in India
Universities every year. Indian teachers are popular at Maldivian schools across islands for
decades. India has traditionally offered a substantial number of ICCR scholarships to Maldivian
youth including 34+ for 2023-24. Since 2012-13, more than 170 Maldivian students have benefited
from ICCR scholarship. Maldives has been a partner of the ITEC programme for several years. In
2019-20, the in-person ITEC slots were increased to 200. In 2022-23 & 2023-24, 174 & 200+ ITEC in-
person slots have been utilised, respectively. For the year 2024-25, ITEC in-person training slots for
Maldives have been increased from 200 to 300.
48. India is seeking to initiate/strengthen institutional linkages and in the past around 5 years,
institutional linkages between counterpart organisations on both sides have increased adding heft
to capacity building and training initiatives. Various MoUs have been signed focusing on capacity
building of Human resources includes (i) Civil Services between Civil Services Commission (CSC)
and National Centre for Good Governance (NCGG), (ii) Cooperation in Customs Capacity Building
between Maldives Customs Service (MCS) and CBIC India, (iii) Parliamentary Cooperation between
Lok Sabha and Majlis, (iv) Judicial Services Commission (JSC) of Maldives and the National Judicial
Academy of India (NJAI), (v) Election Commission of India and the Elections Commission of
Maldives, (vi) Public Service Media (PSM) and Prasar Bharati, (vii) Auditor General’s Office (AGO) in
the Maldives and the CAG, (vii) Aligarh Muslim University (AMU) and Islamic University of
Maldives (IUM), (viii) Peering agreement between High Education Network of Maldives (HNM) and
National Knowledge Network of India (NKN), (ix) MMaldives Police Service (MPS) and Sardar
Vallabhbhai Patel National Police Academy (SVPNA), Hyderabad for Capacity Building & Areas of
Cooperation, (x) Sports and Youth Affairs, (xi) Capacity Building & Training of Members of Local
Councils & Women Development Committee of Maldives between NIRDPR, India and Local
Government Authority, Maldives, (xii) Collaboration in potential fishing zone forecast capacity
building and data sharing and marine scientific research between INCOIS, India and Ministry of
Fisheries, Maldives, (xii) Cooperation in the field of disaster mgt between NDMA, India and NDMA,
Maldives, (xiii) Cooperation in the area of Cyber Security between CERT-India and NCIT, Maldives,
(xiv) Judicial Cooperation between Maldives’ Judicial Services Commission (JSC) and Ministry of
Law & Justice, India, (xv) Immigration Cooperation, (xvi) Institute of Chartered Accountants of
India (ICAI) and the Institute of Chartered Accountants of the Maldives (CA Maldives), etc.
49. Since Jan 2019, total no. of Maldivians visited India for various in-person training
programmes are >3150. Similarly, >1700 virtual training slots have been utilised by Maldivians.
Consular Matters
50. Indian expatriate community in the Maldives has an approximate strength of 27,000. The
have a strong presence in the health and education sector. Majority of the expatriate teachers in
Maldives are Indian nationals (95% of ~1700 expatriate teachers are Indians as in 2022) and
spread across various atolls / islands. Similarly, a large number of doctors, nurses, paramedics and
pharmacist in Maldives are Indian nationals, mostly at middle and senior levels. Indian teachers
and medical professionals are well respected in the society. Several Indian nationals are also
engaged as technicians, engineers, managers, accountants and in hospitality & tourism sector
working in various islands / resorts. There are Indian unskilled workers and most of them engaged
in construction sector. In addition there are few Indian Businessmen running businesses since
long. The Indian community in Maldives lives peacefully and con-exist with Maldivians and other
expatriates, with no major issues being faced by them.
51. Indian expatriates and local Maldivians often organize social and cultural events, in
association with the Indian Cultural Centre (ICC) Male’.
52. “Bilateral Agreement on the facilitation of Visa arrangements’ signed in Dec 2018 came into
effect on March 11, 2019, which grants visa-free entry for tourism, medical and business purposes
bilaterally, for a period not exceeding 90 days in preceding six months. Further, ‘Bilateral
Agreement on Exemption from Visa requirement for holders of Diplomatic and Official Passports’
signed in March, 2019 came into effect from Aug 05, 2019. In the year 2022, more than 140,000
Maldivians visited India for various purposes - medical, business, tourism and education.
53. Agreement for transfer of prisoners under ‘Transfer of Sentenced Persons (ToSP)’ is active.
*****
June 2024