Navy to guard Maldivian Exclusive Economic Zone, with an indirect reference to a perceived threat from India. During all these negative developments in Maldives, India responded with patience and composure, trying to revive relations diplomatically. However, the election of Solih,in , as the new President of Maldives has caused a thaw in India- Maldives relations which can be gauged by: Despite opposition from Indian Ocean Rim Association, India convinced IORA Committee for Senior Officials in favour of Male, following which Maldives was inducted as the newest member of IORA recently. Maldives has asked India for a Dornier aircraft and the MEA has responded positively to its request.
Maldives’ new government has decided to pull out of the free trade agreement (FTA) with China, realizing the one- sided nature of the FTA. Concerns between India and Maldives Chinese inroads: Chinese infrastructure projects in Maldives directly compete with Indian infrastructure companies’ business prospects. China Maldives FTA: An FTA with China would have raised the issue of diverting Chinese products into India through Maldives. Maldivian government has not cleared its stand on future Chinese investments yet and may continue to engage deeply with China.
Low bilateral trade: Bilateral trade between both, which stands at US $ million annually, is quite low. India’s relations with Maldives began to improve with the Presidential elections in . Ibrahim Solih’s electoral victory has opened a new chapter in the India – Maldives relations. Prime Minister Modi attended the Solih’s swearing-in ceremony and affirmed India’s commitment to peace and friendship with Maldives.
The President of the Republic of Maldives, H.E. Mr Ibrahim Mohamed Solih, State Visit to India from - December , keeping India first policy is yet another opportunity for both counties to come together for a closer relationship. As a step towards furthering closer relations between both countries, India promised $ . billion financial assistance package for socio- economic development of the island nation.
Way forward: Recent change in the attitude of Maldivian government is an opportune moment for India to redraw bilateral relations between