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.
Year |
India’s Exports to Maldives (Value
USD Million) |
China’s Exports to Maldives (Value
USD Million) |
2018 |
220 |
396 |
2019 |
226 |
347 |
2020 |
196 |
275 |
2021 |
591 |
406 |
2022 |
498 |
451 |
2023 (Till Q3) |
471 |
521 |
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.
Product |
Value USD Million |
Mineral Fuels & Oils |
58 |
Machinery, Mechanical Appliances, etc. |
57 |
Iron & Steel |
48 |
Pharma Products |
29 |
Plastics & Articles |
28 |
Salt, Sulphur, Earths & Stones |
25 |
Electrical Machinery & Equipment |
22 |
Articles of Iron & Steel |
20 |
Ships, Boats & Floating
Structures |
16 |
Edible Vegetables and Certain Roots |
15 |
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.
Product |
Value USD Million |
Furniture, Bedding, Mattresses, etc. |
61 |
Articles of Iron and Steel |
61 |
Electrical Machinery and Equipment |
58 |
Machinery, Mechanical Appliances,
Nuclear Reactors, etc. |
49 |
Plastics and Articles |
28 |
Vehicles Other Than Railway or
Tramway |
20 |
Ceramic Products |
18 |
Aluminium and Articles |
14 |
Wood and Articles |
13 |
Glass and Glassware |
13 |
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.
Country |
Value USD Million |
Value USD % |
Oman |
641 |
18 |
China |
561 |
16 |
India |
485 |
14 |
Malaysia |
233 |
6 |
United Arab Emirates |
199 |
6 |
Singapore |
140 |
4 |
United States |
136 |
4 |
Sri Lanka |
125 |
4 |
Thailand |
118 |
3 |
France |
88 |
2 |
What is the Issue between
India and Maldives?
On January 4th,
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.