Source: The Hindu

Introduction

Recently, the Prime Minister of India visited Lakshadweep Island and hankered Indian tourists to visit the beaches in Lakshadweep. This led to a controversial reply of a Maldivian minister making fun of the Prime Minister of India terming him as a puppet of Israel. The issue was later stretched by the involvement of several other ministers of Maldives. However, Indian celebrities joined the promenade and urged tourists to visit Lakshadweep Island.

What is the Background of India-Maldives Relations?

• India and the Maldives share historical ties that span centuries.
• The cultural affinities and historical connections have laid the foundation for a strong diplomatic relationship.
• The Maldives, an archipelago strategically located in the Indian Ocean, has been an important partner for India, and historical trade routes have facilitated interaction between the two nations for centuries.

How are Trade Relations Between India and Maldives?

• India and Maldives signed a trade agreement in 1981, which provides for the export of essential commodities.
• India emerged as Maldives’ 3^rd largest trade partner in 2021.
• Indian imports from the Maldives primarily comprise scrap metals while Indian exports to the Maldives include a variety of engineering and industrial products like drugs and pharmaceuticals, radar apparatus, rock boulders, aggregates, cement and agriculture produce like rice, spices, fruits, vegetables and poultry produce etc.
• During 1^st to 4^th August 2022, the official visit of President Solih to India, facilitation of duty-free tuna exports to India from Maldives was announced as well as an MoU on Collaboration in potential fishing zone forecast capacity building and data sharing and marine scientific research between Indian National Center for Ocean Information Services (INCOIS), India and Ministry of Fisheries, Maldives has been signed.

What is the Trade Agreement of 1981?

• Agreement named as Trade Agreement Between the Government of The Republic of India and the Government of The Republic of Maldives was signed by India and Maldives on 1^st March 1981.
• It was made in effect for 1 year until any of the signing countries modified it.

Conclusion

• The said controversy will have impact upon international relations as well as trade relations of India and Maldives.