India-Maldives 2nd High Level Core Group (HLCG) Meeting

General Studies Paper -2

Context: Maldivian Foreign Minister has arrived in New Delhi to lead the Maldivian delegation at the 2nd High Level Core Group (HLCG) meeting.

About

• Both foreign ministers will review the progress of the India–Maldives comprehensive economic and maritime security partnership.
• The India-Maldives vision document on a comprehensive economic and maritime security partnership was adopted by Prime Minister Narendra Modi and Maldivian President last year.

Key Highlights of the Vision Document

• Bilateral Commitment and Financial Support: India reaffirmed its commitment under ‘Neighbourhood First’ and Vision SAGAR.
  • India extended emergency financial assistance (rollover of $100 million in T-bills and currency swap worth $400 million + ₹30 billion).
• Framework for a Comprehensive Partnership: A new strategic framework is established for a Comprehensive Economic and Maritime Security Partnership, intended to be people-centric and future-oriented.
  • Serve as a stabilizing force in the Indian Ocean Region.
• Development Cooperation: Enhanced infrastructure projects such as ports, airports, housing, schools, roads, hospitals.
• Trade and Economic Cooperation: Explore a Bilateral Free Trade Agreement (FTA).
  • Enable local currency trade settlement to reduce dollar dependence.
  • Boost investments and ease of doing business.
  • Support Maldivian economic diversification (blue economy, fisheries, oceanography).
• Collaboration on Digital Public Infrastructure: UPI, Digital ID, Gati Shakti.
  • Expansion of RuPay and digital payment infrastructure.
  • Shared expertise in fintech and digital governance.
• Energy Cooperation: Focus on renewables (solar power), energy efficiency.
  • Participation in One Sun One World One Grid initiative.
  • Institutional cooperation through joint research, training, and investment.
• Health Cooperation: Access to affordable Indian healthcare and generic medicines (Jan Aushadhi Kendras).
  • Recognition of Indian Pharmacopoeia in Maldives.
• Regional and Multilateral Cooperation: Work together in the Colombo Security Conclave (CSC) and other multilateral fora.
  • Emphasis on maritime safety, regional peace, and mutual representation.
• Implementation Mechanism: A High-Level Core Group (HLCG) has been formed to monitor and oversee the implementation of all cooperation initiatives.
  • The group will include senior representatives from both governments.

Significance

• Regional Stability: This partnership is crucial for stability in the Indian Ocean amidst growing Chinese presence in the region.
• Diplomatic Maturity: Shows both sides’ willingness to move past tensions and focus on long-term shared interests.
• People-Centric Focus: Heavy emphasis on health, education, housing, and livelihood is notable.
• Economic Sovereignty for Maldives: Local currency trade and support for diversification give Maldives more economic autonomy.
• Security Balance: India remains a key security partner, but through cooperation tailored to Maldivian preferences.

Way Ahead

• Maldives is India’s key maritime neighbour and an important partner in India’s ‘Neighbourhood First’ policy and vision MAHASAGAR which is Mutual and Holistic Advancement for Security and Growth Across Regions.
• By acknowledging and addressing the challenges, India and the Maldives can navigate the complexities of their relationship and build a stronger, more resilient, and mutually beneficial partnership for the future.