India to augment capabilities of Maldives National Defence Force

New Delhi: Maldives President Dr Mohamed Muizzu shed his “India-out” and pro-China image to seek the support of India in augmenting the capabilities of the Maldives National Defence Force (MNDF). This could advance MNDF’s maritime and security requirements in line with its national priorities.

Dr Muizzu discussed aspects of participation in forthcoming bilateral military exercises between India and Maldives with Indian Prime Minister Narendra Modi here today. Modi informed that today, they adopted the vision of a “Comprehensive Economic and Maritime Security Partnership”.

Both leaders agreed to inaugurate at an early date the state-of-the-art Maldivian Ministry of Defence (MoD) building in Malé, constructed with India’s assistance, that will augment the modern infrastructural capacity of the MoD. As natural partners, they resolved to work together in advancing maritime and security cooperation for the benefit of the peoples of both India and Maldives as well as for the larger Indian Ocean Region.

The two countries agreed that India, “as a trusted and dependable partner”, will work closely with Maldives in sharing expertise, augmenting capabilities and undertaking joint cooperative measures, as per the needs and requirements of Maldives.

Both also agreed that the ongoing Maldives National Defence Force (MNDF) ‘Ekatha’ harbour project at Uthuru Thila Falhu (UTF) with India’s assistance will significantly contribute towards enhancing MNDF’s operational capabilities, and agreed to extend full support for its timely completion.

Decks were cleared for India-Maldives defence relations on September 6, 2024, in the course of the 5th Defence Cooperation Dialogue between the two countries in New Delhi. This was the first time since New Delhi withdrew its uniformed military personnel from the island nation earlier this year, and the meeting provided both sides with an opportunity to discuss matters related to bilateral defence cooperation. This included expediting the implementation of various ongoing defence cooperation projects.

“We will continue our cooperation in training and capacity building of the Maldives National Defence Forces,” Modi said. 

Dr Muizzu, on a State visit to India between October 6-10, 2024, acknowledged along with Modi that it was an opportune time for both sides to chart a new framework for cooperation to comprehensively transform the bilateral relationship into a Comprehensive Economic and Maritime Security Partnership, which is people-centric, future-oriented and will act as an anchor of stability in the Indian Ocean Region.

This has been the first bilateral visit of President Dr Muizzu to India. He will also visit Mumbai and Bengaluru where he would be attending business events. He had earlier visited India in June 2024 to attend the swearing-in ceremony of the Prime Minister and the Council of Ministers. He expressed his appreciation for the decision of the Government of India to extend support in the form of USD 400 million and INR 30 billion as a bilateral currency swap agreement, instrumental in tackling the ongoing financial challenges faced by the Maldives.

Both leaders discussed opening a new Indian consulate in Addu and a new Maldivian consulate in Bengaluru.

Both Modi and Dr Muizzu discussed comprehensive cooperation for infrastructure development in the Maldives. Today, over 700 social housing units constructed with India’s assistance were handed over. Modi said water and sewerage projects were completed on 28 islands of the Maldives, while work on six other islands will soon be completed. “These projects will ensure the supply of clean water to thirty thousand people,” he said.

Today, they also inaugurated a runway at the Hanimadhoo International Airport. Modi announced that now, the ‘Greater Male’ Connectivity Project will also be expedited, and support will also be provided in the development of a new commercial port in Thilafushi.

Earlier today, the RuPay card was launched in the Maldives to enhance ease of payments for Indian tourists visiting the island nation. Dr Muizzu agreed to work closely with India to extend similar services for Maldivian nationals visiting India. Modi said in future, both will work to connect India and the Maldives through UPI as well.

“Development partnership is a key pillar of our relationship. And we always give preference to the priorities of Maldivian people in this context,” Modi said. He announced that India will now provide assistance to Maldives in setting up an Agriculture Economic Zone in “Haa Dhaalu” and a fish processing facility in Haa Alifu. “We will also work together in the fields of oceanography and blue economy,” he disclosed.

The leaders agreed to implement further measures to support Maldives in addressing its financial challenges. Dr Muizzu also thanked India for its timely emergency financial assistance, including by way of rolling over T-bills subscribed by the State Bank of India (SBI) amounting to $100 million in May and September 2024 for a further period of one year that provided the much-needed financial cushion for Maldives in addressing its urgent financing needs. This year SBI has rolled over $100 million of Treasury Bills for Maldives. Today, as per the need of Maldives, a currency swap agreement of $400 million and INR 3000 crore (INR 30 billion) has also been concluded.

Dr Muizzu acknowledged India’s continued role as the ‘First Responder’ of Maldives in times of need, following India’s earlier assistance in the last decade during the 2014 water crisis in Malé and the COVID-19 pandemic.

Both Muizzu and Modi comprehensively reviewed the entire gamut of bilateral ties while noting the progress made by both countries in deepening their historically close and special relationship that has immensely contributed to the betterment of the peoples of the two countries.

Modi underscored the importance attached by India to its relationship with Maldives under its ‘Neighbourhood First’ Policy and Vision SAGAR and reaffirmed India’s unwavering commitment to assisting Maldives on its developmental journey and priorities.

The two sides also deliberated on a few other areas of common interest such as high-level exchanges and capability development projects. 

I. Political exchanges

In order to intensify exchanges at leadership and ministerial levels, the two sides will expand them to include exchanges of Parliamentarians and local government representatives. In addition, recognizing the contribution of shared democratic values in the growth of bilateral ties, they decided to conclude a Memorandum of Understanding to enable institutionalized cooperation between the two Parliaments.

II. Development Cooperation

Taking into account the progress of ongoing developmental partnership projects, which have already brought tangible benefits to the people of Maldives, the two sides decided:

i. To work together in advancing the developmental partnership, as per the needs and requirements of Maldives, across areas, including ports, airports, housing, hospitals, road networks, sports facilities, schools and water and sewerage;

ii. To provide assistance to the Maldives in addressing the housing challenges and to accelerate the ongoing social housing projects supported by India’s assistance;

iii. To extend full support for the timely completion of the flagship Greater Malé Connectivity Project (GMCP), and to undertake a feasibility study to connect the islands of Thilafushi and Giraavaru as an extension;

iv. To collaborate in the development of a state-of-the-art commercial port at Thilafushi island to de-congest the Malé port and provide enhanced cargo handling capacity at Thilafushi;

v. To also explore collaboration for the development of transhipment facilities and bunkering services contributing towards the Maldives Economic Gateway project at Ihavandhippolhu and Gaadhoo islands of Maldives;

vi. To jointly work in harnessing the full potential of Hanimaadhoo and Gan airports that are being developed with Indian assistance as well as other airports of Maldives. Towards this end, both sides will also consider measures to strengthen air connectivity, attract investments and collaborate for efficient management of these airports;

vii. To jointly work in establishing “Agriculture Economic Zone” and tourism investments in Haa Dhaalu atoll and fish processing and canning facility at Haa Alifu atoll with Indian assistance;

viii. To further expand through additional financing the successful High Impact Community Development Projects to take the India-Maldives people-centric development partnership to every part of Maldives.

III. Trade and economic cooperation

In view of the untapped potential for bilateral trade and investment, the two sides agreed:

i. To initiate discussions on a Bilateral Free Trade Agreement focusing on trade in goods and services between the two countries;

ii. To operationalize the settlement of trade transactions between India and Maldives in local currencies to deepen trade linkages and reduce dependency on foreign currencies;

iii. To promote bilateral investments and closer engagements between the two business chambers and entities; steps shall be taken to disseminate information relating to investment opportunities and to improve the ease of doing business;

iv. To support the efforts of Maldives towards diversification of its economy by strengthening cooperation in the areas of agriculture, fisheries, oceanography and blue economy, including through the establishment of academic linkages and expanding research & development cooperation;

v. To enhance efforts to boost tourism between the two countries through marketing campaigns and collaborative efforts.

IV. Digital and financial cooperation

Given that developments in digital and financial domains have a transformational impact on governance and delivery of services the two sides agreed:

i. To share expertise on the implementation of digital and financial services;

ii. To cooperate in the domain of Digital Public Infrastructure (DPI) by launching India’s Unified Payments Interface (UPI), Unique Digital Identity, Gati Shakti Scheme and other digital services that will enhance e-governance and delivery of services through the digital domain for the benefit of people of Maldives;

V. Energy cooperation

Given the role of energy security in ensuring sustainable development, the two sides agreed to explore cooperation through the implementation of solar power and other renewable energy and energy efficiency projects to bring down energy costs and enable Maldives to achieve its NDC Goals, both sides will establish a framework for an institutional partnership which will include training, exchange of visits, joint research, technical projects and promotion of investments.

Towards this end, both sides will also undertake a feasibility study to identify measures that would enable Maldives to participate in the One Sun One World One Grid initiative.

VI. Health Cooperation

The two sides agreed:

i. To further deepen ongoing health cooperation through the provisioning of safe, quality and affordable healthcare to the people of Maldives in India and promoting linkages between hospitals in India and facilities and improving access to essential health services in Maldives for strengthening healthcare infrastructure in Maldives;

ii. To work towards recognition of Indian pharmacopoeia by the Government of Maldives, followed by the establishment of India-Maldives Jan Aushadhi Kendras across Maldives to contribute to health security efforts of Maldives through provisioning of affordable and quality generic medicines from India;

iii. To work together to improve mental health services and support systems for central and regional mental health services of Maldives;

iv. To collaborate through training programs for healthcare professionals to enhance skills and knowledge;

v. To work together on health research initiatives to address common health challenges including cancer, infertility, etc;

vi. To work together in sharing of expertise on drug de-addiction and rehabilitation measures as well as assist in setting up of rehabilitation centres in Maldives;

vii. To work together in enhancing the capacity of the Maldives to undertake emergency medical evacuations.

VII. Defence and Security Cooperation

The Maldives, with its vast Exclusive Economic Zone, is exposed to traditional and non-traditional maritime challenges including piracy, Illegal, unreported, and unregulated fishing, drug smuggling, and terrorism. 

The two sides agreed:

i. To support Maldives with the provisioning of defence platforms and assets to augment the capabilities of MNDF as well as that of the Government of Maldives in advancing its maritime and security requirements in line with its national priorities;

ii. To support Maldives in enhancing the surveillance and monitoring capability of MNDF with the provisioning of radar systems and other equipment

iii. To support Maldives on Hydrographic matters, including, through capacity building and training, as per the requirements of the Government of Maldives;

iv. To strengthen cooperation in the area of disaster response and risk mitigation, including through the development of SOPs and exercises to achieve enhanced interoperability;

v. To assist Maldives in the domain of Information Sharing by supporting the development of capabilities through infrastructure, training and sharing of best practices.

vi. To increase capacity building & training slots for MNDF, Maldives Police Services (MPS), and other security organizations of Maldives under the ITEC programmes and other customized training programmes in India;

vii. To extend financial assistance to develop and upgrade MNDF infrastructure.

VIII. Capacity Building and training

Reviewing the various ongoing capacity-building initiatives that have positively contributed towards the human resource developmental needs of Maldives, the two sides agreed to further expand support towards training and capacity building as per the requirements and priorities of Maldives; They also agreed:

i. To continue with customized training programmes for civil servants and local government representatives of Maldives.

ii. To launch a new programme to promote women-led development by imparting skills training and extending support to Maldivian women entrepreneurs for their enhanced participation in the Maldivian economy;

iii. To collaborate in the establishment of a Start-up Incubator-Accelerator in Maldives to harness the innovation potential of the youth.

IX. People-to-people linkages

People-to-people linkages between India and Maldives have remained the bedrock of the special and unique ties between the two countries. The two sides agreed to take measures to deepen these linkages and decided:

i. To work positively towards establishing a consulate of Maldives in Bengaluru and a consulate of India in Addu city recognizing that these would contribute to the expansion of trade and economic cooperation and greater people-to-people contacts;

ii. To enhance air and maritime connectivity to facilitate ease of travel, support economic engagement and promote tourism;

iii. To establish higher education institutions, skilling centres and centres of excellence in Maldives, as per its needs and requirements;

iv. To work towards establishing an ICCR Chair in the Maldives National University.

X. Cooperation at Regional and Multilateral Fora

With the recent signing of the Charter of the Colombo Security Conclave (CSC), India and Maldives, as founding members of the CSC, reaffirmed to work closely in advancing their common maritime and security interests to achieve a safe, secure and peaceful Indian Ocean Region. The two sides also agreed to continue working closely in multilateral fora.

The leaders directed officials from both India and Maldives to implement the outlined areas of cooperation in a timely and efficient manner to steer the Comprehensive Economic and Maritime Security Partnership between the two countries for the common benefit of the peoples of both India and Maldives as well as for the Indian Ocean Region. They decided to constitute a new High-Level Core Group to oversee the progress in the implementation of this vision document. The leadership of this group will be decided mutually between the two sides.

– global bihari bureau