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Rising Kashmir > Blog > Editorial > India Maldives Free Trade
Editorial

India Maldives Free Trade

RK News
Last updated: July 26, 2025 12:16 am
RK News
Published: July 26, 2025
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There are no permanent friends and foes in international politics. If there is any interest that prevails then it is only the national interest. This can be  easily understood by the India-Maldives  talks that have started for free trade between the two nations. Prime Minister Narendra Modi who is on an official two day visit to  Maldives has said that the two countries have  started the negotiations on India-Maldives Free Trade Agreement(IMFTA).It is pertinent to mention that  after the bilateral  meeting  was held between the two sides, India has decided to  extend the  Line of Credit(LOC) of Rs. 4850 crore to Maldives. Not only that, Prime Minister Modi’s visit to Maldives also includes the handing over of  3300 social housing units in Hulhumale under India’s Buyers’ Credit facilities and inauguration of the Roads and Drainage  system  project in  Addu city. In terms of India-Maldives relations, Prime Minister Narendra Modi has said, “Maldives is just not a neighbour but a co-traveller. Our relations are touching new heights. Be it a disaster or a pandemic, India has always stood by as the ‘First Responder’. The Maldives holds an important place in both India’s ‘Neighbourhood First’ Policy and the MAHASAGAR vision.” These remarks were made by Prime Minister Narendra Modi after holding comprehensive talks with Maldivian President  Mohammed Muizzu. The two leaders  held talks on wide ranging issues and areas that include trade, defence and infrastructure.This all has happened when previously the Maldivian government had taken an antagonistic position against India and walked upto China.India-Maldives relations must be seen in terms of Chinese fishing in the Maldivian waters.It is an open secret now that Maldives had walked upto China at the cost of damaging the bilateral relations with India. Both nations have been trying to bolster their presence in the islands that have geostrategic significance. Till two years ago, China seemed to have greater influence over the leadership of the islands that are home to east-west shipping lanes. It must be noted that the India Out campaign  was vehemently opposed to Indian presence in the island nations  and its government was pressing for the withdrawal of the Indian troops.China cashed this policy to outwit India in the geo-strategic equation and encouraged and patronised the anti-India forces.Maldivian President visited Maldives  and inked a pact  with China for the non –lethal weapons at no cost. And Beijing also agreed to train the Maldivian soldiers.Earlier this kind of training was imparted by the Indian and American  troops to the Maldivian soldiers. South Asia Institute’s Michael Kugelman says that Muizzu has been trying to balance the power game with both China and India. While Maldives has gravitated towards Beijing when it comes to the defence sector, Muizzu wants New Delhi’s help in commerce as well as economics.What will unfold in the coming months cannot be said at this juncture but one thing is clear that India has outwitted China in wooing Maldives and make its presence felt.So that China is not allowed alter the Indian intrests.Prime Minister Narendra Modi has extended a hand of friendship to Maldives in spite of its unacceptable policy and behaviour towards India in the previous years.This speaks about Indian large heartedness towards its neighbours as Indian diplomacy is based on human and ethical values.India wants good relations based on peaceful ties with its neighbours.

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