India and Maldives Pact

Why in News?

• India and Maldives have recently signed pacts on development projects in Maldives.

Highlights

• Both the Maldives and Sri Lanka are India’s key maritime neighbours in the Indian Ocean Region and occupy a special place in the Prime Minister’s vision of ‘SAGAR’ (Security and Growth for All in the Region) and ‘Neighbourhood First’.
• It includeincludees grant assistance of 100 million Rufiyaa (currency of Maldives) for the High Impact Community Development Project (HICDP) scheme.
• A number of socio-economic development projects are planned to be implemented throughout the country under this funding.
• It also Included the development of a sports complex in Gahdhoo, and academic collaboration between Maldives National University and Cochin University of Science and Technology
• Defence cooperation extends to the areas of Joint Exercises – “Ekuverin”, “Dosti”, “Ekatha” and “Operation Shield” (begun in 2021).
• India provides the largest number of training opportunities for Maldivian National Defence Force (MNDF), meeting around 70% of their defence training requirements.
• Signing of an USD 80-million contract for the Addu reclamation and shore protection project.
• A drug detoxification and rehabilitation centre in Addu built with Indian assistance.
• The centre is one of 20 high impact community development projects being implemented by India in areas such as healthcare, education, fisheries, tourism, sports and culture
• Tourism is the mainstay of Maldivian economy. The country is now a major tourist destination for some Indians and a job destination for others.
• In August 2021, Afcons, an Indian company, signed a contract for the largest-ever infrastructure project in Maldives which is the Greater Male Connectivity Project (GMCP).
• India is Maldives 2nd largest trading partner – rising up from its 4th position in 2018. In 2021, bilateral trade registered a growth of 31% over the previous year – overcoming the pandemic-related challenges.
• A Bilateral USD Currency Swap Agreement between RBI and Maldives Monetary Authority was signed on 22 July 2019.