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How Maldives land agreement affects India

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Smita Sharma
Smita SharmaJul 25, 2015 | 17:24

How Maldives land agreement affects India

The constitutional amendment to authorise foreign ownership or freehold in the island nation of the Maldives is not aimed at establishing military establishments. The high commissioner of Maldives to India Ahmed Mohamed, sought to assuage the Indian establishment's fears that the move was detrimental for New Delhi, and aimed to benefit the Chinese.

Speaking exclusively to Mail Today, the envoy stressed, "The Constitution itself does not allow military establishments. India has nothing to be worried about. This is purely for commercial reasons as Maldives needs to diversify its economy and reduce its sole reliance on tourism, like any other successful country." According to sources, the Maldivian high commissioner also conveyed the same to foreign secretary S Jaishankar whom he met on Thursday morning to discuss other bilateral issues.

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Amendment

The constitutional amendment which received 70 votes in favour following an overnight debate in parliament, was ratified by President Abdulla Yameen Abdul Gayoom on Thursday. This will allow foreign nationals and entities who invest in a project worth more than one billion US dollars to purchase land in this tiny nation which is key to the Indian Ocean region. This has led to much apprehension in South Block, about a possible increase in Chinese foothold in its maritime neighbourhood.

High commissioner Mohamed though argues that those advocating the democratisation of Maldivian politics, should also support the modernisation of its economy. "We sit in the Indian Ocean. The security of the Indian Ocean is important for Maldives itself. And we will not do anything to disrupt its stability and security," he said. "We are not those people who will shoot ourselves in the foot," he added.

Hawks in Indian policy networks believe that President Yameen has a clear tilt towards Beijing, a sentiment expressed by opposition leaders in the Maldivian parliament as well. China's President Xi Jinping was the first head of state since President Yameen assumed power and the first Chinese president to visit Maldives in September 2014. Whereas in the wake of political upheaval following arrest of former President Nasheed, Prime Minister Modi had steered away from Maldives when he embarked upon his Indian Ocean tour in March earlier this year travelling to Seychelles, Mauritius and Sri Lanka.

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Ratification

Report of a Chinese submarine passing through Maldivian waters before it docked at Karachi's port on May 22 this year , not only set alarm bells ringing for Delhi, but was also raised reportedly by opposition MDP MP Eva Abdulla during the amendment debate in Maldives' parliament.

During Xi's visit, Maldives has expressed its willingness to partner with China in its ambitious silk route project. Beijing is also providing loans to Male for infrastructural development, with some key projects like the airport road project being handed to the Chinese.

Indian private investments meanwhile are yet to take off in a big way in Maldives. While Indian firm GMR had a terribly rough patch in Male's airport development project, the Taj Group has had a successful run for years in the country's tourism sector.

Opportunity

High commissioner Mohamed believes that GMR was an "isolated" case that is still under arbitration, and Maldivians are going by the rule book.

After ratifying the second constitution, President Yameen in a televised address said, "The Maldivian government has given assurances to the Indian government and our neighbouring countries as well to keep the Indian Ocean a demilitarised zone."

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Sources suggest that high level exchanges are soon expected between India and Maldives, which will iron out issues and boost economic ties. Incidentally, July 26 marks the 50th anniversary of Maldives' freedom as well as diplomatic ties between the two nations. And Delhi has promised the presence of a full rank senior cabinet minister for Maldives' national day celebrations, which will be held later in August.

Reacting to media reports of alarm in New Delhi over the latest developments in Male, former foreign secretary and former chairman of National Security Advisory Board, Shyam Saran advises, "India cannot push back China from Maldives or any other country. While Delhi should be concerned about all activity in the Indian Ocean, it needs to look at this as a window of opportunity for Indian firms as well to invest in Maldives."

Last updated: July 25, 2015 | 17:29
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