Memorandum of Understanding Between India and Maldives

In News

Recently ,The Union Cabinet, chaired by the Prime Minister was apprised of the Memorandum of Understanding (MoU) signed between  India and Maldives  on cooperation in the field of Sustainable Urban Development.  

About 

• The MoU comes into effect on the date of signing by the two contracting parties i.e. 20th February, 2021 and will remain in force for indefinite period.
• A Joint Working Group (JWG) will be constituted to strategize and implement programmes on cooperation under the framework of the MoU. 
  • The Joint Working Group will meet once in a year, alternately in Maldives and in India.
• Objectives: To facilitate and strengthen India-Maldives technical cooperation in the field of sustainable urban development including Urban Planning, Smart Cities Development, Solid waste management, Affordable housing, Urban Green Mobility, Urban Mass Rapid Transport, smart cities development and any other related area mutually agreed by contracting parties.
  • To promote strong, deep and long-term bilateral cooperation in the field of Sustainable Urban Development between the two countries.

• The MoU is expected to create employment in the areas of sustainable urban development .

India – Maldives Relations

Historical

• India and Maldives share ethnic, linguistic, cultural, religious and commercial links.
• India was among the first to recognize the Maldives after its independence in 1965 and later established its mission at Male in 1972.
• India and Maldives officially and amicably decided their maritime boundary in 1976.

Political Relations

• Both 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. 
• India and Maldives have consistently supported each other in multilateral areas such as the UN, the Commonwealth, the NAM, and the SAARC.
• The Memorandums of Understanding (Mou) signed between both the countries covers areas such as hydrography, health, passenger and cargo services by sea, capacity building in customs and civil service training.

Strategic Importance:

• In the Indian Ocean, Maldives archipelago comprising 1,200 coral islands lies next to key shipping lanes which ensure uninterrupted energy supplies to countries like China, Japan, and India.
• The Maldives holds strategic importance for India under the government’s ‘Neighbourhood First’ policy due to its location in the Indian Ocean. 

• Maldives is an important aspect of India’s ‘Neighbourhood First’ policy and ‘India First’ has been a stated policy of the Government of Maldives. Both nations are working together to counter China’s presence in the Indian Ocean Region(IOR). 

Trade and Economy

• India and Maldives signed a trade agreement in 1981, which provides for export of essential commodities and Under the bilateral agreement, India provides essential food items like rice, wheat flour, sugar, dal, onion, potato and eggs and construction material such as sand and stone aggregates to the Maldives on favourable terms.
•  Indian and Maldives signed the $800 million Line of Credit Agreement in March 2019, for assisting the Maldives to achieve sustainable social and economic development. 
• India has a positive Balance of Trade with Maldives and is the 4th largest import source for Maldives after UAE, China and Singapore.

Development Assistance Programme

• India has helped Maldives in many diverse areas to bolster the development of Maldives e.g. Indira Gandhi Memorial Hospital, Maldives Institute of Technical Education (now called the Maldives Polytechnic), India-Maldives Faculty of Hospitality & Tourism Studies, Technology Adoption Programme in Education Sector in the Maldives,  a port on Gulhifalhu, airport redevelopment at Hanimaadhoo, and a hospital and a cricket stadium in Hulhumale etc.

India’s crucial help to Maldives

• Operation Cactus: It was an attempt by a group of Maldivians led by Abdullah Luthufi and assisted by armed mercenaries of a Tamil secessionist organization from Sri Lanka, the People’s Liberation Organisation of Tamil Eelam (PLOTE), to overthrow the government in the island republic of Maldives on 3rd November 1988. 
  • The coup  failed due to the intervention of the Indian Army, whose military operations efforts were code-named Operation Cactus.
  • Maldives urged India for help following the collapse of the island’s only water treatment plant, India helped by sending its heavy lift transporters like C-17 Globemaster III, II-76 carrying bottled water.
• Operation Neer was initiated by the Indian government to help the Maldives after a major fire broke out at the Male Water and Sewerage Company.

Diaspora

• There are 25,000 Indian nationals living in the Maldives (second largest expatriate community).
• The proximity of location and improvements in air connectivity in recent years has led to a very substantial increase in the number of Indians visiting the Maldives for tourism and business.India is a preferred destination for Maldivian for education, medical treatment, recreation, and business.

Defence

• Since 1988, defence and security have been a major area of cooperation between India and Maldives.
• A technical agreement on sharing ‘White Shipping Information’ between the Indian Navy and the Maldives National Defence Force was also signed, enabling the exchange of prior information on the movement of commercial, non-military vessels.
•  India has adopted a very flexible and accommodating approach in meeting Maldivian requirements of defence training and equipment.
  • India provides the largest number of training opportunities for Maldivian National Defence Force (MNDF), meeting around 70% of their defence training requirements. 
• Ekuverin is a joint military exercise between India and Maldives.
•  Maldives is key to India’s ambition to become a regional maritime security provider.
• Anti-Piracy and Anti-Terror operations can also be carried out with Maldives’ help. 

Concerning Points

• China’s “String of Pearls”: Aims to ensure the security of its sea lanes, especially the unhindered flow of critically-needed energy supplies from Africa and West Asia through the Indian Ocean.
• Former President Yameen’s Policies and China Card: Although the incumbent President Ibrahim Mohamed Solih is pro-India, the previous president Yameen’s policies hurt the Indian Prospects.
• Political Instability since 2015: It poses challenges while dealing with the changing governments.
• Increasing Radicalisation: The Maldives is also within the reach of radical outfits like Daesh (IS) and Pakistan based Madarassas, etc.

Conclusion and way forward 

• India-Maldives are perfectly placed to complement each other’s strategic interests.
• Hence, deeper Socio-Economic and Defence engagement can help both to propagate mutual interests at Global Platform.

Source :PIB