04-03-2021 | 16:04 PM
India - Maldives signed defence Line of Credit Agreement
Context
Recently, the Government of India handed over outdoor fitness equipment for 61 islands across the Maldives. The initiative is part of New Delhi’s nearly 200 million MVR-worth cash grant and development projects which is being executed with Male, apart from the USD 800 million lines of credit.
Key Highlights
Defence Line of Credit was signed on the basis of a proposal submitted by the Government of the Maldives in April 2013 to assist and cooperate India in enhancing the capabilities of the Maldives Security Forces in the area of maritime surveillance and subsequent requests in October 2015 and March 2016.
It is seen as crucial to India's and the Maldives' strategic interests, especially given China's rising footprint in the Indian Ocean region.
A dockyard will be built at the Uthuru Thila Falhu (UTF) Naval Base with Indian assistance, a few miles northwest of Male, to reinforce the Maldivian defence capability.
The Maldivian side informed India of its support for India's permanent membership of the "expanded and reformed" UN Security Council.
India has provided support for the candidature of the Maldives to the Presidency of the 76th session of the General Assembly.
India - Maldives Relations:
The friendship between India and the Maldives was established in 1966. India is one of the countries that recognised the Maldives since it achieved independence in 1965.
Both countries share ethnic, linguistic, religious, cultural and commercial relations. Currently, the Maldives are home to 25.000 Indian citizens.
Both the countries are the founding members of SAARC. India also considers Maldives a part of its ‘Neighbourhood First’ Policy. In the line, India is a part of the ‘India First’ policy of Maldives.
The economic relation between both the countries have strengthened significantly after the success of Operation Cactus. India has always provided extensive economic aid for developing infrastructure, health, telecommunications in the country. India also established the Indira Gandhi Memorial Hospital in Male.
