India Extends Essential Commodities Quota to Maldives Amidst Diplomatic Strain

India-Maldives relations: Ahmedabad Desk. Maldivian Foreign Minister Moosa Zameer appreciated India's decision to renew the quota for exporting essential commodities to his nation, citing it as a testament to the enduring bilateral friendship and the shared commitment to bolster trade ties. This announcement comes amidst a backdrop of strained diplomatic relations between the two countries.

Renewed Quota Announcement

India has granted permission for the export of specific quantities of essential commodities for the fiscal year 2024-25, in response to the request made by the Maldives government. The Indian High Commission, announcing this move via a post on social media platform X, highlighted the utilization of a unique bilateral mechanism, resulting in an upward revision of quotas for various essential items.

Historical Significance and Gratitude

The notice issued by the Indian High Commission emphasized that the approved quantities mark a historic high since the initiation of this arrangement in 1981. Foreign Minister Zameer expressed sincere appreciation to India, particularly thanking External Affairs Minister Dr. S. Jaishankar and the Government of India for their role in renewing the quota. Zameer hailed the gesture as a symbol of enduring friendship and commitment to bilateral trade expansion.

Response and Policy Context

Responding to Zameer's gratitude, External Affairs Minister S. Jaishankar reaffirmed India's commitment to its 'Neighbourhood First' and Security and Growth for All in the Region (SAGAR) policies. The 'Neighbourhood First' policy underscores India's focus on strengthening ties with neighboring countries, while SAGAR emphasizes maritime cooperation in the Indian Ocean region.

Diplomatic Context

The renewal of the quota occurs against the backdrop of strained diplomatic relations between India and the Maldives since November the previous year. Tensions arose following demands by President Mohamed Muizzu, known for his pro-China stance, and controversial remarks by Maldivian officials. This strained atmosphere was exacerbated by a social media backlash against the Maldives, resulting in a decline in Indian tourism to the island nation.

Trade Agreement and Bilateral Trade Growth

The 1981 trade agreement between India and the Maldives facilitates the export of essential commodities. Bilateral trade between the two countries has shown steady growth, surpassing USD 300 million in 2021 and USD 500 million in 2022. The announcement also includes a five percent increase in quotas for various essential items.

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Support for Development

India reaffirmed its commitment to supporting human-centric development in the Maldives as part of its 'Neighbourhood First' policy. Notably, the quota for crucial construction materials like river sand and stone aggregates has been increased by 25 percent to meet the demands of the Maldives' booming construction industry.