both by helping Maldives to resuscitate its economy. Some major area of confidence building are Investment cooperation with Maldives should be enhanced by establishing an advisory cell to guide all stake-holders i.e. Indian missions overseas and prospective Indian investors, to delineate touchy areas and risky investments, with full knowledge of the local conditions. ‘Free-Purse’ policy of aid to Maldives is needed if India wants to offset Chinese big-ticket investments in Maldives.
India must enhance anti-terrorism cooperation and intensify cooperation in the areas of training and capacity building of the Maldives National Defense Force and the Maldives Police Service. A regular bilateral security dialogue amongst the officials of both sides should be instituted to expand the scope of security cooperation. This should be supplemented by Track-II and Track- . dialogues.
While dealing with smaller neighbors like Maldives, India needs to become a lot more magnanimous, staying true to its own “Gujral Doctrine,” thus creating greater confidence. The SAARC and IORA can provide a platform to work on lingering concerns. Moreover, India, Maldives and Sri Lanka can explore ways to strengthen trilateral mechanisms to address these issues.