INDIA NEWS
Jan 16-31, 2024 - Vol 4, Issue 12
From the editor’s desk
India-Maldives relations need strategic rejuvenation By Rabindra Mukherjee
Tamil Nadu's achievement of securing investment deals worth ₹6.64 lakh crore is remarkable, to say the least. The diversity of sectors covered, including green energy, electric vehicles, global capability centers, and non-leather footwear, shows the state's commitment to move ahead towards the future. The state’s Chief Minister, M K Stalin's emphasis on generating over 26 lakh jobs through these investments demonstrates the tangible impact on employment and economic growth. The strategic distribution of investments across the state, along with the formation of a committee with a view to ensuring the conversion of memorandums of understanding into actual investments, is a projection of Tamil Nadu's dedication to balanced and sustained development. The event's success, surpassing promises made previously, depicts a promising picture of Tamil Nadu's economic trajectory, from here on. Global participation in the event, with representatives from nine countries engaging in discussions with industry experts and economists, underscores Tamil Nadu's increasing significance on the global investment map. Major players like Tata Power, Sembcorp, Adani Group, and Leap Energy, alongside international commitments from Singapore and Taiwanese firms, show the diverse and widespread impact of these investments. Beyond industrial partnerships, Tamil Nadu showcased its cultural richness and technological advancements through platforms like the 'Village Cooking Channel' on YouTube. The interactive pavilion featuring a robot and 3D-Jallikattu bull further positioned Tamil Nadu as an innovative hub for both cultural and technological pursuits. Similarly, the Vibrant Gujarat Global Summit 2024, inaugurated by Indian Prime Minister Narendra Modi, marked a significant milestone
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in the state's journey towards economic prominence. With Memorandums of Understanding signed for 41,299 projects, attracting a whopping ₹26.33 lakh crore in potential investments, Gujarat fortified its position as India's investment magnet. The summit's global appeal, with over 61,000 delegates from 140 countries, reflects Gujarat's growing stature on the international stage. The participation of dignitaries like UAE President Mohammed bin Zayed Al Nahyan and Presidents from Mozambique, TimorLeste, and the Czech Republic adds a diplomatic and strategic dimension to the event. Torrent Group's commitment of ₹47,350 crore to various projects, including renewable energy, solar parks, and hydrogen manufacturing, symbolizes the diversity of investments witnessed during the summit. Indian Home Minister Amit Shah's declaration of India as the preferred destination for production and investment, along with Gujarat being the gateway to a developed India, underscores the summit's broader impact on the national narrative. The emphasis on green initiatives, such as green hydrogen, renewable power, and e-mobility, aligns with global sustainability trends. Major players like Suzuki Motors and DP World pledging investments in a new car factory and a mega port terminal showcase Gujarat's attractiveness across diverse sectors. The summit's focus on the semiconductor industry, with Inidan Minister Ashwini Vaishnaw urging investments and calling for a center of excellence for semiconductor research and development at IIT Gandhinagar, underscores Gujarat's strategic vision. As Gujarat positions itself as a hub for semiconductor innovation, it aligns with the broader narrative of India becoming a global player in technology and manufacturing. Both Tamil Nadu and Gujarat's success stories emphasize the pivotal role global investment summits play in fostering economic growth, job creation, and technological advancements. These platforms provide states with the opportunity to showcase their potential, attract diverse investments, and forge international partnerships. Investors, both domestic and international, seek these summits as strategic entry points into regional markets. The diverse sectors covered, from green energy to semiconductors, showcase a forward-looking approach that is in consonance with global trends, and positions states as leaders in innovation.
for the Maldivian economy. Trade agreements and economic engagements have propelled bilateral trade, crossing USD 300 million in 2021. A bilateral USD currency swap agreement between the Reserve Bank of India (RBI) and Maldives Monetary Authority further underscores the financial cooperation between the two countries.
Global investment summits illuminate India’s economic horizon The recently concluded Global Investors Meet 2024 in Tamil Nadu and the Vibrant Gujarat Global Summit 2024 have catapulted these dynamic Indian states into the spotlight, heralding a new era of economic development, innovation, and global collaboration. These summits, marked by historic investment pledges and strategic partnerships, underscore the critical role such events play in shaping the economic landscape of a nation.
EDITORIAL
The recent call by Maldivian President Mohamed Muizzu for the withdrawal of Indian military personnel by March 15 has injected a note of uncertainty into the historically strong ties between India and the Maldives. A diplomatic spat fuelled by derogatory comments from Maldivian ministers targeting Prime Minister Narendra Modi has strained the traditionally close relationship. Examining the historical foundations, economic engagements, and recent challenges provides insights into the complexities and opportunities inherent in the India-Maldives relationship. Historical foundations History has shown that India has had steadfast support for the Maldives, which forms the basis of the relationship. The 1988 coup attempt in the Maldives saw Operation Cactus, where Indian armed forces intervened, laying the foundation for a robust bilateral connection. This history of standing by each other in times of crisis has fostered trust between the two countries. Underpinning this relationship is India's Neighbourhood First Policy, which places strategic importance on countries in close proximity, and the Maldives holds a pivotal role in this context. Proximity to India's west coast and its central location in vital commercial sea lanes make the Maldives a linchpin in India's strategic priorities. The 'Net Security Provider' role that India plays in the Maldives signifies their defense cooperation. Joint exercises, including "Ekuverin," "Dosti," "Ekatha," and "Operation Shield," underscore the collaborative efforts in maintaining the safety and security of the Indian Ocean Region (IOR). This defense partnership contributes significantly to the Security And Growth for All in the Region (SAGAR) vision advocated by India. Economic & trade engagements The economic aspect of IndiaMaldives relations has flourished over the years. India's status as one of the largest sources of tourists for the Maldives fortifies the economic ties between the two nations. In 2023, India led the list of visitors to the Maldives, contributing substantially to the tourism sector, which is a lifeline
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Development and capacitybuilding initiatives represent another aspect of the economic collaboration. Infrastructure projects, healthcare assistance, educational programs, and cultural connectivity initiatives have strengthened the foundations of this relationship beyond the realms of security and economy. Challenges for bilateral relations Despite the historical and economic underpinnings, recent frictions have emerged, testing the resilience of India-Maldives relations. Derogatory comments by Maldivian ministers following Indian Prime Minister Modi's visit to Lakshadweep sparked tensions. India officially raised the issue, leading to the suspension of the ministers involved. The subsequent 'India Out' campaign, coupled with President Muizzu's call for the withdrawal of Indian troops, intensifies the challenges. The 'India Out' initiative amplifies scepticism about India's investments, defense partnerships, and security provisions, reflecting a shift in the geopolitical landscape. The revocation of the hydrographic survey agreement adds another layer of complexity. Maldives' apprehensions about India's hydrographic activity being a form of intelligence collection underscore the delicate nature of maritime security collaboration. The increasing influence of China in the Maldives adds a geopolitical dimension to the challenges. The Maldives' participation in China's Belt and Road Initiative (BRI) and a Free-Trade Agreement (FTA) with China signify a pivot in the strategic considerations of the island nation. The way forward To go beyond the complexities and rejuvenate the India-Maldives relationship, a multifaceted approach is needed. The first could be to find out and develop tourism destinations in India for Indian and foreign travellers; therefore Lakshadweep is being developed to that end. This should not be viewed as a coercive Indian tactic, but an initiative to drive home the point that the Maldives needs India more than the latter needs the former. Another step is investing in basic infrastructure for undiscovered coastal areas can diversify tourism opportunities. Regular diplomatic dialogues between leaders and officials of both the countries should
be prioritized to address the contentious issues between the two nations. Continued Indian support to the Maldives for its infrastructure development, healthcare, and education can enhance India's role as a reliable partner. There is also a need to reiterate India's commitment to being a 'first responder' in times of crisis, which will give a boost to enhance trust between the two countries. Then, an effort should also be made through diplomatic channels to send across a strong message to smaller nations like the Maldives to exercise prudence in dealing with neighbours like India, who have always stood by them and ensured stability in their regions. This can prevent unnecessary provocations. Specifically, diplomatic solutions should be given priority over confrontations, by reminding each other of their shared history and cultural relations. There is also a need for crafting a comprehensive Indian Ocean strategy. This calls for maximizing maritime security efforts, which can contribute to the safety and freedom of navigation in critical sea lanes. There should also be active participation in humanitarian assistance and disaster relief operations, through various alliances. This will highlight India's commitment to regional security. Then, media, especially social media’s role cannot be underestimated in establishing friendly relations between the two countries. Instead of acting irresponsibly, a responsible social media can lead to strong peopleto-people relations between the two countries. Also, promoting responsible behaviour on social media is vital for building a positive image. This requires the acknowledging of the role of social media can play in promoting national interest, while, at the same time, discouraging actions that may be counterproductive. Pondering over the IndiaMaldives relationship, one can discern that it stands at a crossroads, facing challenges that need a balanced but comprehensive response. While recent events have introduced strains, the historical, economic, and cultural ties between the two nations provide a foundation for overcoming these hurdles. A coordinated effort to address concerns, build trust, and strengthen regional cooperation will be essential for keeping intact India’s regional and geopolitical importance in the region, which is in the larger interest of the Maldives. It is in the interest of both the countries to engage in dialogue and diplomacy, and bring the relationship back to normalcy.
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