India-Maldives set to sign 4 MoUs, discussions on economic recovery ongoing

With discussions on economic recovery ongoing, India-Maldives are set to sign four memorandums of understanding (MoUs). It will include the grant of $100 million by India for the $500 million Greater Male Connectivity Project that will link Male with three islands; cooperation in youth and sports affairs; setting up soil and plant testing laboratories; and establishing a drug detox facility.

India, according to a government statement, has unveiled a number of measures to boost the economic recovery in Maldives, where the tourism industry has been hit hard by the COVID-19 pandemic. As such, New Delhi has provided a soft loan of $250 million as budgetary support and declared a $500 million package, in August, to help build the Greater Male Connectivity Project. India will also provide a $400 million line of credit for the project. Moreover, the two countries have launched a cargo ferry service, which connects Tuticorin and Cochin ports with Male. This service has cut costs and has helped save time taken to transport goods.

The World Bank had predicted that Maldives will be the the South Asian nation hardest hit by the pandemic as it depends on tourism. To cushion the impact, the island nation had reopened its borders in July, but the number of arrivals has been extremely low. To encourage more visitors, Maldives highlighted health benefits such as isolation provided by the one island, one resort concept; visitors are screened for COVID-19 on arrival, and are not required to spend time in quarantine.

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Harsh Shringla, the Indian foreign secretary, is on a two-day visit to Maldives. He held discussions with his Maldivian counterpart Abdul Ghafoor Mohamed on economic recovery, and ways to strengthen and deepen the multi-faceted relationship. According to a statement by the Maldives’ Foreign Ministry, Shringla and Ghafoor also discussed health and cultural cooperation, human resource development, and consular and community affairs. “They emphasized recovery and resilience efforts to curb the onset of the COVID-19 pandemic, including boosting tourism, accelerating the implementation of the ongoing development cooperation projects across the Maldives, and the means of elevating connectivity and bilateral trade between Maldives and India.” Shringla also held a meeting with Maldives’ President Ibrahim Solih. They looked at ways to enhance regional trade and connectivity, economic cooperation, tourism and overcoming the COVID-19 pandemic.