Wednesday 13 / August / 2025
New Delhi: India’s relations with the Maldives have evolved from a helping hand to a trusted development partner, fostering socio-economic growth through security cooperation, financial and medical aid, infrastructure projects, and educational institutions. With deepening ties, the trade trajectory between the two nations is poised for significant expansion in the coming years.
The bilateral relations between India and the Maldives are far older than the sixty years of formal diplomatic ties. It is a story written in the language of the sea—of shared monsoon winds, historic trade routes, and centuries of people-to-people contact. The proximity of their shores has meant that history, culture, and destiny have long flowed between the two nations.
Separated by only seventy nautical miles at the closest point, India and the Maldives have been bound together not merely by geography, but by a deeper connection of trust and mutual respect. From ancient traders sailing between the Malabar Coast and Malé to twenty-first-century digital bridges, the India–Maldives story is one of friendship continually renewed.
For India, the Maldives is more than a dot on the Indian Ocean map—it is a neighbor of the heart. This sentiment is embedded in India’s Neighbourhood First policy and the MAHASAGAR vision, which recognize that the security and prosperity of the region are inseparable.
India’s approach is grounded in the belief that small island nations are not peripheral actors in global affairs. They are frontline states in the fight against climate change, guardians of critical sea lanes, and partners in maritime security. The Maldives, straddling vital shipping routes, occupies a central place in India’s Indian Ocean strategy.
Over the decades, India has become the Maldives’ most trusted partner, always ready to step in as the “First Responder.” This is not merely about crisis management; it is a moral and strategic commitment shaped by cultural familiarity and a shared maritime heritage. When the Maldives has faced challenges, whether natural disasters, political instability, or economic shocks, India has been there, offering support without hesitation and without attaching conditions. This readiness to act in moments of need is not an occasional gesture but an ongoing responsibility that India has embraced.
In 2004, when the Indian Ocean tsunami devastated parts of the Maldives, India was among the first to provide relief, sending ships and aircraft laden with supplies. During the COVID-19 pandemic, India ensured that the Maldives received essential medicines, vaccines, food grains, and medical supplies, preventing shortages in a time of global disruption. These moments underscore a pattern of trust and dependability.
But the relationship has evolved far beyond emergency assistance. Today, the India–Maldives partnership is a proactive, forward-looking collaboration. Both nations work together on infrastructure, renewable energy, maritime security, digital connectivity, and climate resilience. The transformation is visible in the development of new bridges, airports, roads, and housing, which stand as physical symbols of friendship. These projects are not isolated interventions but part of a larger vision of economic resilience, social cohesion, and sustainable development.
One of the most visible dimensions of India’s support is in infrastructure development that directly touches the lives of Maldivian citizens. The Greater Malé Connectivity Project, the largest infrastructure project in the Maldives, will link the capital Malé with neighboring islands through a network of bridges and causeways, unlocking economic and social opportunities that were previously limited by geography. In the southern atolls, the Addu Road Development Project is improving internal transport links, enabling smoother trade and travel. In the north, the redevelopment of Hanimaadhoo International Airport will open the region to more international flights, boosting tourism and trade.
Soon, a modern ferry system will connect islands more efficiently, reducing travel times and increasing economic integration. What was once measured in hours by boat will now be measured in minutes by ferry, bringing communities closer and creating new opportunities for commerce and cultural exchange. These initiatives are knitting the Maldives into a more connected and prosperous nation, while reinforcing the principle that development must be inclusive.
The financial framework supporting this cooperation is equally significant. India has extended a line of credit worth USD 565 million to fund infrastructure projects aligned with Maldivian priorities. This is not simply a financial transaction but a long-term commitment to the Maldives’ growth. To encourage private investment, the two nations are close to finalizing a Bilateral Investment Treaty, which will provide legal safeguards for investors and ensure that capital flows are protected. Alongside this, discussions are underway for a Free Trade Agreement aimed at lowering tariffs, expanding market access, and stimulating bilateral trade. Together, these three elements—credit, investment protection, and trade liberalization—form a solid foundation for an enduring economic partnership.
The economic integration is not limited to agreements on paper. The introduction of a local currency settlement system now allows trade to be conducted directly in Indian Rupees and Maldivian Rufiyaa, reducing currency conversion costs and improving transaction efficiency. Complementing this is the rapid adoption of India’s Unified Payments Interface in the Maldives, enabling seamless digital transactions. For tourists from India, paying for services in the Maldives has never been easier, while local businesses benefit from faster and cheaper payment processing. These measures are deepening economic ties and demonstrating that technology can serve as a bridge between nations.
Trade between India and the Maldives reflects complementary strengths. India supplies fuel, pharmaceuticals, construction materials, machinery, and food products that are essential to the Maldivian economy. In return, the Maldives exports fish, seafood, and tourism-related services, taking advantage of its rich marine resources and vibrant hospitality sector.
Bilateral trade between India and the Maldives has grown significantly over the past seven years, increasing from USD 223 million in 2017–18 to USD 680 million in 2024–25. India’s exports to the Maldives rose from USD 217 million in FY 2017-18 to USD 561 million in FY 2024-25, while imports from the Maldives expanded from USD 6 million to USD 119 million during the same period. India’s trade surplus with the Maldives has widened from USD 211 million in 2017–18 to USD 442 million in 2024–25.
Investment flows are also growing. Indian companies are active in Maldivian infrastructure, tourism, fisheries, and renewable energy, bringing both capital and technical expertise. Maldivian investors are exploring opportunities in India’s hospitality and marine sectors, taking advantage of India’s large consumer market. The Bilateral Investment Treaty, once in place, will provide the confidence needed for larger and more ambitious investments. The Line of Credit also opens the door for public–private partnerships in sectors like ports, airports, and energy, creating opportunities for both nations to innovate together.
In conclusion, over the past six decades, the India–Maldives relations have evolved from neighborly goodwill into a multi-dimensional strategic partnership. It is grounded in history, strengthened by trust, and aimed at a shared future of prosperity, stability, and security. From housing projects to high-tech payments, from joint climate research to maritime security patrols, this partnership touches nearly every sphere of public life in the Maldives. For India, the Maldives is not simply a neighbour; it is a partner in destiny.
Going ahead, as both nations navigate the challenges of climate change, shifting geopolitics, and rapid technological change, one thing will remain constant: India and the Maldives will continue to move forward together, anchored in friendship, powered by shared aspirations, and guided by the conviction that in the Indian Ocean, their destinies converge forever.
