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INDIA ANNOUNCES $500 MN PACKAGE FOR MALDIVES

Focus: GS-II International Relations

Why in news?

India announced a slew of new connectivity measures for the Maldives, including air, sea, intra-island and telecommunications in an effort to help the Indian Ocean Islands deal with the economic impact of the COVID-19 pandemic.

Details

  • Among the initiatives announced at a meeting between Indian External Affairs Minister and Maldives Foreign Minister are an air connectivity “bubble” for travel, a direct ferry service, a submarine cable for telecom connectivity; and assistance for the Greater Male Connectivity project (GMCP) to connect Male to three neighbouring islands, the biggest such project thus far.
  • India has decided to support the implementation of the GMCP in Maldives, through a financial package consisting of a grant of USD 100 million and a new Line of Credit (LoC) of USD 400 million.
  • The US $400 million Line of Credit comes in addition to a previous LoC of $800 million that was announced by New Delhi in 2018.
  • The GMCP would be the largest civilian infrastructure project in Maldives.

Connecting islands

  • The project, which will consist of a number of bridges and causeways to connect Male to Villingili, Thilafushi and Gulhifahu islands that span 6.7 km, taking much of the pressure of the main capital island of Male for commercial and residential purposes.
  • When completed, the project would render the Chinese built Sinemale Friendship bridge connecting Male to two other islands quite insignificant in comparison.

India–Maldives relations

  • India and Maldives are neighbors sharing a maritime border and relations between the two countries have been friendly and close in strategic, economic and military cooperation.
  • Maldives is located south of India’s Lakshadweep Islands in the Indian Ocean.
  • Both nations established diplomatic relations after the independence of Maldives from British rule in 1966.
  • India has supported Maldives’ policy of keeping regional issues and struggles away from itself, and the latter has seen friendship with India as a source of aid as well as a counterbalance to Sri Lanka, which is in proximity to the island nation and its largest trading partner.

Significance

  • Maldives plays an integral role in realising the potential of Indian Ocean blue economy as a contributor to the security and sustainable development of sea resources.
  • The growing Chinese presence in the archipelago could have serious security implications.
  • The crucial oil supply coming from Gulf nations to India pass through this area.
  • There are about 25,000 Indian expatriates in Maldives who are engaged in a number of professional pursuits and their security is also of prime concern for India.

-Source: The Hindu

April 2024
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