Funding Allocated to Maldives in the Union Budget 2025-26

Introduction 

A Historical Overview

India and Maldives – A small country located southwest of India- have shared close relations since its independence in 1965. Throughout a history of consistent and close cooperation which at any point was free of any bilateral irritants India and Maldives have cooperated in multiple segments, mainly defence, science and technology, and have shared similar views regarding international issues. A significant aspect of the relations between the two countries is that the changes in the Government or the leadership have never altered the pattern of their bilateral relations. India has assisted the Maldives in capacity enforcement, healthcare, and financial assistance. During the pandemic, India provided critical medical supplies and facilitated travel for Maldivian patients to Indian medical facilities, underscoring the robust health cooperation between the two nations. Under Mission Sagar, India dispatched the Indian Naval Ship Kesari in May 2020, delivering medical assistance teams and essential COVID-19-related medicines to the Maldives and other Indian Ocean nations. 

Strategic Importance- The Chinese Interference 

The Maldives’ strategic location gives India access to the Sea Lanes of Communication, a critical maritime checkpoint for trade between West Asia and Southeast Asia. Given that the Indian Ocean functions as a global trade and energy route, the Maldives is a significant passageway, which is crucial in securing these important routes. This holds immense significance for India, as nearly 50% of its external trade and 80% of its energy imports transit through these waters. With increasing maritime trade, economic development and geopolitical competition, China is one of the obvious challengers in this region. Beyond diplomatic and trade partnerships, Beijing has begun a consistent military presence in the area. Despite not being in the Indian Ocean region, China was quick to respond to the water crisis in Male, Maldives. While India was the first to extend assistance to the Maldives, China quickly followed, demonstrating its “responsiveness” during times of crisis. To make its presence evident, China 2017 opened its first-ever military facility in the Indian Ocean highlighting not only China’s vigilance when it comes to seeking opportunity but also China’s attempt at being an everpresent factor affecting trade routes and geopolitical ties. However, the traditionally strong relationship between India and the Maldives has faced growing challenges in recent years, driven by shifting geopolitical priorities, domestic political changes, and external influences. While India has historically been the Maldives’ closest ally, China’s increasing involvement in the island nation has reshaped regional dynamics, leading to diplomatic tensions. This shift has been further compounded by the rise of the ‘India Out’ campaign, a nationalist movement calling for the removal of India’s military presence in the Maldives.

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Author : Saesha Deviprasad