India-Maldives Tensions – Maldives Trade with India Down and China Up

10 February 2024

With the ongoing tensions between Maldives and India, Maldives’s trade relations with China are getting better. Maldives is focusing on importing more goods from China, instead relying on India. Recently, Maldives has signed new agreement with China to boost their trade relations. Following Maldives criticism of India, the new government of Maldives has put restrictions on importing goods from India. What are the trade relations between India and Maldives? What are the trade relations between China and Maldives? How much Maldives rely on imports from India and China? Get stats-oriented answers of every trade question through this write-up.

India and China Trade with Maldives (Comparison)

India’s relations with Maldives have been strained, especially since Muizzu, who campaigned on an “India Out” platform, took office.

China and the Maldives have upgraded their relationship during newly elected President Mohamed Muizzu’s first state visit to Beijing. The Maldives signed several new agreements with China.

Here’s year-wise view of India and China trade with Maldives.

India’s Top 10 Exports to Maldives

India’s top exports to Maldives at Chapter level are mineral fuels and oils, machinery, mechanical appliances, nuclear reactors, etc., iron and steel, pharmaceutical products, and plastics and articles. The given chart shows values of India’s top 10 exports to Maldives in 2022.

China’s Top 10 Exports to Maldives

On January 10, Maldives signed new agreements with China and announced intent to implement the Maldives-China Free Trade Agreement (FTA). The list of key agreements signed between Maldives and China makes a reference to the Belt and Road Initiative (BRI).

China’s top exports to Maldives at Chapter level are furniture, bedding, mattresses, etc., articles of iron and steel, electrical machinery and equipment, machinery, mechanical appliances, nuclear reactors, etc., plastics and articles, and vehicles other than railway or tramway. Here’ picturization of China’s top 10 exports to Maldives with their values reported in 2022.

Maldives’ Top 10 Import Partners

China is the Maldives’ biggest bilateral creditor, ahead of India. Oman is however, a top import partner of Maldives. Maldives’ other import partners are Malaysia, the United Arab Emirates, Singapore, the United States, Sri Lanka, Thailand, and France. The chart given shows values of these countries reported in 2022.

What is the Issue between India and Maldives?

On January 4^th, Indian Prime Minister, Narendra Modi posted pictures on the beauty of India’s beaches in Lakshadweep on social media. That sparked a diplomatic row with the Indian Ocean Island nation, Maldives. As a country that leans heavily on tourism at its own beaches, three Maldivian junior ministers were quick to criticize the Indian Prime Minister, which led to calls from Indian social media users to boycott Maldives as a tourist destination.

The newly elected Maldivian president, Mohamed Muizzu called for Indian troops to leave Maldives and for a more independent foreign policy, which would include improving ties with China.  

Sri Lanka, another neighbour of India, has also been gravitating towards China. India and China relations soured in 2020 after clashes between soldiers in the western Himalayas resulted in the deaths of 20 Indian soldiers and four Chinese troops.