India and Maldives are neighbours sharing a maritime border. Relations have been friendly and close in strategic, economic and military cooperation. India continues to contribute to maintaining security on the island nation.
The financial aid provided by India exemplifies the enduring and trustworthy bond between India and Maldives. The aligned principles of India's "Neighbourhood First" and Maldives' "India First" policies have synergistically worked to protect the welfare of both nations' citizens. Moreover, this assistance serves as a testament that India remains steadfast in supporting the government and people of Maldives in the days to come.
It represents India's second-largest ongoing plantation infrastructure endeavor, following the $500 million Greater Male' Project. The Greater Male' Project aims to link the capital with three adjacent highlands through a 6.74-kilometer-long sea bridge.
History
Maldives is located south of India's Lakshadweep Islands in the Indian Ocean. Both nations established diplomatic relations after the independence of Maldives from British rule in 1966. India was one of the first nations to recognise Maldives' independence. Since then, India and Maldives have developed close strategic, military, economic and cultural relations. India has supported Maldives' policy of keeping regional issues and struggles away from itself, and the latter has seen friendship with India as a source of aid as well as a counterbalance to Sri Lanka, which is in proximity to the island nation and its largest trading partner.
Bilateral treaties and strategic partnership
1976 Maritime treaty
In December 1976, India and the Maldives signed a maritime boundary treaty to agree on maritime boundaries. Treaty explicitly places Minicoy on the Indian side of the boundary. India and Maldives officially and amicably decided their maritime boundary in 1976. A minor diplomatic incident occurred in 1982 when the brother of the President of Maldives Maumoon Abdul Gayoom gave a speech that India mistook as a claim that the neighboring Minicoy Island that belonged to India were a part of Maldives; Maldives rapidly officially denied that it was laying claim to the island and explained that President Maumoon's brother had in fact been talking about the cultural connections between Maldives and Minicoy.
1988 Comprehensive trade agreement
In 1981, India and Maldives signed a comprehensive trade agreement. 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. Indian and Maldivian leaders have maintained high-level contacts and consultations on regional issues.
Commercial relations
Since the success of Operation Cactus, the relations between India and Maldives have expanded significantly. India has provided extensive economic aid and has participated in bilateral programmes for the development of infrastructure, health, telecommunications and labour resources. It established the Indira Gandhi Memorial Hospital in Malé, the capital of Maldives, expanded telecommunications and air links and increased scholarships for Maldivian students. While India's exports to Maldives during 2006 were worth ₹384 crore, imports were worth less than ₹6 crore. The State Bank of India has contributed more than US$500 million to aid the economic expansion of Maldives. India and Maldives have announced plans to jointly work to expand fisheries and tuna processing.
Military relations
In April 2006 Indian Navy gifted a Trinkat Class Fast Attack Craft of 46 m length to Maldives National Defence Force's Coast Guard.