India – Indian Ocean Region

India – Maldives India – Mauritius India - Seychelles India’s Priorities in the IOR

• SAGAR Doctrine – ‘Security and Growth for All in the Region’ - a doctrine outlined by Prime Minister Modi in 2015 • Net Security Provider – India’s aspiration • Blue Economy India - Maldives

India’s interests in the Maldives:

• Political stability in the neighborhood • Its strategic location straddling the vital sea lanes of Indian Ocean • Safety of its nationals working in the atoll state • Protection of its investments and trade • Prevention of state and non-state forces inimical to Indian interests gaining a firm foothold in the Maldives. Strategic Location of Maldives Background

• India was among the first to recognize Maldives after its independence in 1965 and to establish diplomatic relations • India and Maldives share ethnic, linguistic, cultural, religious and commercial links steeped in antiquity • India and Maldives officially and amicably decided their maritime boundary in 1976 • India and Maldives signed a comprehensive trade agreement in 1981 • Both nations are founding members of the SAARC, the South Asian Economic Union (SAEU) and signatories to the South Asia Free Trade Agreement (SAFTA) Operation Cactus

• In November 1988, PLOTE militants infiltrated the island with an intent to stage a daring coup • President of Maldives Maumoon Abdul Gayoom sent an SOS to New Delhi • India responded swiftly by launching ‘Operation Cactus’ to neutralize the coup attempt • Indian forces arrived within hours of the request for aid being made, squashed the coup attempt and achieved full control of the country within hours. Impact of Op Cactus

• Jitters in Sri Lanka • India's intervention was endorsed by global powers as well as its smaller neighbours • India’s speedy and decisive victory and the restoration of the Maldivian government brought both nations even closer Background

• 2004 Indian Ocean Tsunami – India’s assistance • 2008 - India extended a Standby Credit Facility (SCF) of US $100 million to the Maldives. • 2014 Water Crisis - India dispatched “water aid” to the Maldives, after a fire destroyed the generator of its biggest water treatment plant • India and Maldives have consistently supported each other in multilateral fora such as the UNSC, UNFCCC, the Commonwealth, the NAM and the SAARC Policy Contours

India’s policy contours towards the Maldives can be understood under three broad frames: 1. Political 2. Economic 3. Security Political Dimension

• India’s paramount concern - emphasis on ‘democratic stability’ in the neighborhood • Maumoon Abdul Gayoom - ruled for 30 years as President beginning in 1978 • Repeated coup attempts a cause for concern • In 2008, a new constitution was approved and the first direct presidential elections were held, which were won by Mohamed Nasheed • Social and political unrest grew in late 2011, following opposition campaigns in the name of protecting Islam • In February 2012 former Maldivian President Mohamed Nasheed, fearing arrest, took refuge in the Indian High Commission • Nasheed was later prohibited to contest the upcoming presidential elections in 2013. • To India, it was politically unjust to block a candidate from the largest political party from contesting elections. However, India’s appeals went unheeded. Political Dimension

• Electoral Crisis followed • Mohamed Nasheed was allowed to contest • Election process witnessed dramatic twists and turns in terms of postponements and annulments • India was disappointed and disturbed – tried to ensure that the election process was completed and results announced • Though hardline forces in the atoll state called India “pro Nasheed,” it maintained strict neutrality throughout • Finally, Abdulla Yameen Gayoom won • Under the new Maldivian government, India had to deal with few major challenges – ➢Increasing influence of China ➢Political instability & weakening of democracy ➢Rise in radicalism and jihadist activity President Yameen’s 2016 visit to India:

• He thanked India for its steadfast leadership shown in protecting the Maldives in the CMAG (Commonwealth Ministerial Action Group) deliberations • Defence Action Plan - envisages an institutional mechanism at the level of the Defence Secretaries • Pacts signed in the field of tourism, taxation, conservation & SAARC satellite. • The iHaven project of Maldives identified as something for India to participate in, is a key scheme in President Yameen’s SEZ programme. Political Dimension

• The arrest of opposition leader Nasheed in 2015 on terrorism charges threw up a major challenge for Modi govt • Due to the unfolding crisis, Modi had to drop the Maldives from his four-nation Indian Ocean tour in March 2015 • In the 2018 elections Ibrahim Mohamed Solih won leading to normalization of ties between India and Maldives Ties Under Ibrahim Solih

• Prime Minister Modi visited Maldives to attend the swearing-in ceremony of President Solih as his special guest. • Indian reaffirmed its ‘Neighbourhood-First’ policy and Maldives reaffirmed its "India-First Policy” • India announced a financial assistance up to US$ 1.4 billion in the form of budgetary support, currency swap and concessional lines of credit to fulfil the socio-economic development programmes of the Maldives. Economic Dimension

• India is a major trading partner and source for tourism • India has been providing loan assistance to promote Maldivian island resorts, marine products exports, business enterprises and commercial projects. • India has regularly helped Maldives face foreign exchange crises • India extended a Standby Credit Facility of $100 million to help stabilize the Maldivian fiscal position and to meet its import expenditure Economic Dimension

• Indian private sector has significant investments

GMR Controversy (2012): • Within months of Nasheed’s stepping down as President in 2012, Maldives announced the termination of a $511 million airport project with the Indian infrastructure company GMR Infrastructure Limited. • It went on to award the airport contract to a Chinese firm • This clearly indicated the increasing influence of pro-China/anti-India groups like Adhaalath Party Economic Dimension

Balance of Trade – Maldives has a huge trade deficit with India

Recent developments – • Cooperation in the petroleum and natural gas sectors, particularly in oil exploration • Joint Projects to increase regional and sub-regional transport and connectivity • Further strengthen investment and trade cooperation to address BoT imbalance Security Dimension

Radicalization & Terrorism: • Sunni-majority state • Influence of Islamic State and Pakistan-based radical madrassas • Saudi funding for radical school of Wahhabism and Salafist ideologies • ISI-LeT foothold to target South India China’s Footprint

• Chinese presence and influence increased significantly following the opening of its embassy in Malé in 2011. • Maldives has emerged as an important “pearl” in China’s “String of Pearls” strategy • Chinese constitute the highest number of tourists arriving in Maldives and this gives them greater leverage • 2016: Island lease to China - Feydhoo Finolhu, an uninhabited island close to Male has been given on lease for 50 years. • 2017: BRI and MSR - Maldives endorsed China’s Belt and Road Initiative (BRI) and signed MoU on Maritime Silk Road. • 2017: China-Maldives signed an FTA • Strategic Projects - China-Maldives friendship bridge connecting the airport to the capital, Airport Development etc. China’s Footprint

• Recent amendments to the Maldivian constitution in July 2015 allow foreigners to own land • China will be the obvious beneficiary • New Delhi remains concerned about “Maldivian islands turning into Chinese bases.” Security Co-operation

• India’s assistance to the MNDF in training, supply of equipment, capacity building, joint patrolling, aerial and maritime surveillance, and medical treatment • Coastal Surveillance Radar Project – for intelligence, surveillance, and reconnaissance (ISR) capabilities and maritime domain awareness in the IOR • Joint military exercises - “DOSTI” (Coast Guards) and “Ekuverin” (Army) • Indian warships and Dornier reconnaissance aircrafts for maritime patrolling and surveillance. • Dhruv Helicopters – 2018 Visa extension issue Coastal Surveillance Radar System Cooperation in the Indian Ocean

• In 2009 a defence pact was signed to boost strategic ties – ➢for greater co-op in maritime security, ➢active operational assistance by India’s tri-services to the Maldives Armed Forces ➢Intelligence sharing ➢protection of the Maldives Exclusive Economic Zone (200nm) ➢INS Tilanchang – a fast attack craft donated ➢The Trilateral Maritime Security Co-operation Initiative was launched by India, Sri Lanka and Maldives in 2011. ➢India had provided Dornier recon aircrafts, Dhruv ALH, radars etc. The Way Forward: Opportunities

• The way forward for India therefore is to strengthen the democratic institutions of Maldives • The democratic constitution of Maldives is too young; The constitution must be strengthened to eliminate room to drift back towards authoritarianism. • India must exercise its economic leverages prudently. • India should continue providing economic aid in addition to the development projects that are already underway • The widening trade deficit has to be addressed The Way Forward: Opportunities

• Increasing connectivity both by air and sea under the Air Services Agreement • India’s offer to allow visa-free entry for medical purposes is a welcome step and should further enhance such people to people initiatives • India should further act as the Net Security Provider in the region 14th Aug 2020 India - Mauritius India - Mauritius Factors which make Mauritius a crucial partner in the IOR – • Around 68% of the Mauritian population is of Indian descent • It straddles the strategically significant region in the Indian Ocean and located in close proximity to mainland Africa • India – Mauritius ties are entwined by history, culture, democratic values and intimate ancestral ties • Issues related to Tax Haven, Round Tripping, FDI and Black Money Strategic Location of Mauritius Background • Mauritius maintained contacts with India through successive Dutch, French and British occupation. • 1834 – First batch of Indian indentured labourers landed in Mauritius to work in sugar plantations • The day and location are designated as – ‘Aapravasi Day’ and ‘Aapravasi Ghat’ Background

• A brief stopover by Mahatma Gandhi en route to India from South Africa in 1901, is still etched in the consciousness of Mauritius • Barrister Manilal Doctor, who came to Mauritius in 1907 on Gandhi’s advice helped the Mauritian Indian community to organise themselves and laid the foundation for their struggle for political and social rights • As a tribute to Gandhiji and the Indian freedom struggle, the National Day of Mauritius is celebrated on March 12 Political Ties

• India – Mauritius have enjoyed very close, intimate political ties over the decades. • Mauritius has accorded centrality to India in its foreign policy. • India has aided Mauritius consistently with regard to ensuring its political stability. • Mauritius’ importance in India’s foreign policy was made more than clear as then Prime Minister Navinchandra Ramgoolam was the only non- SAARC leader to be invited for the swearing-in ceremony of Prime Minister Modi in New Delhi in May 2014. Strategic, Defence and Security Ties

• India has forged extensive defence relations with Mauritius to safeguard sea lanes of communication, which trawls over 70 per cent of India’s energy imports, from depredations of terrorists and pirates. • The Indian Navy has been proactively cooperating with the National Coast Guard of Mauritius • Indian naval ships regularly conduct surveillance and joint patrolling of the vast Exclusive Economic Zone (EEZ) of Mauritius. Strategic, Defence and Security Ties:

• India has gifted ALH Dhruv, Coastal Radar Surveillance System (CSRS) and an Offshore Patrol Vessel (OPV) Barracudda for anti-piracy efforts • Training for Mauritian police and defence personnel by Indian Navy and MARCOS • India also sees Mauritius as a Gateway to Africa – member of AU, SADC, COMESA and the Indian Ocean Commission • This is a key plank for accelerating India’s economic and strategic engagement with Africa • India hopes Mauritius will also join the ongoing Trilateral Maritime Security Cooperation Initiative between India, Sri Lanka and Maldives. • New Delhi announced an economic package in 2012 for purchase of Defence equipment The Indian Ocean Commission

• It is an intergovernmental organization that links five African Indian Ocean nations: 1) Comoros 2) Madagascar 3) Mauritius 4) Réunion (an overseas region of France) 5) Seychelles • There are also seven observers: China, India, Japan, the Sovereign Order of Malta, the European Union, the Organisation internationale de la Francophonie, and the United Nations. • The commission was created in 1982 in Port-Louis, Mauritius. • The secretariat is based in Mauritius. • Recently in March 2020, India was admitted as an observer in the Indian Ocean Commission The Indian Ocean Commission Economic Ties

• India is Mauritius’ largest trading partner, and has been the largest exporter of goods and services to Mauritius. • Mauritius has been the single largest source of Foreign Direct Investment (FDI) into India. • Petroleum forms single largest export item by India to the island nation. FDI, Round Tripping, DTAA, Black Money, Tax Evasion

• Mauritius is typically considered an offshore tax haven • A large dosage of portfolio investment comes in through Mauritius and hence the suspicion that Participatory Notes masking the identity of the actual investor have been using the tax dodge route to round trip money into India • The Double Taxation Avoidance Agreement between the two nations has been viewed with misgivings and scepticism. • India finally decided to amend a few key clauses in the nearly 30-year-old DTAA. • The amendments will now allow India to tax capital gains earned by Mauritius based entities. These entities will now have to pay capital gains tax for investments in India made from April 1, 2017. Economic Ties

• India – Mauritius have also signed an MoU Concerning Cooperation in the Exchange of Financial Intelligence Related to Money Laundering & Financing of Terrorism • India has also extended a slew of Line of Credits to Mauritius for infrastructure development, skills development, capacity building and project appraisal. • India has also provided assistance in the setting up of Mauritius’s National Hydrographic Unit. Modi’s visit in 2015

• A key MoU was signed that will see India taking over responsibility to build transport infrastructure (sea and air links) for the Agalega Islands. • PM stressed on the mantra of SAGAR – Security and Growth for all in the Region as part of its responsibility as the Net Security provider in the region. • PM Modi commissioned the OPV Barracuda • Five agreements in various areas of mutually beneficial cooperation were signed, including - ➢ Ocean Economy or “Blue Economy” ➢ Traditional Systems of Medicine A Strategic Gain Modi’s visit in 2015

• A Line of Credit of USD 500 million to finance civilian infrastructure projects • India is expected to offer its expertise and funding to help Mauritius move away from its traditional economy of sugarcane crops and tourism • PM Modi also inaugurated the World Hindi Centre Cultural, Educational and People-to-People Ties

• Indira Gandhi Centre for Indian Culture , Mahatma Gandhi Institute • Yoga and traditional Indian systems of health (AYUSH) are extremely popular • Indian Technical and Economic Cooperation (ITEC) has been India’s flagship capacity building programme. • Pan African e-Network Project was inaugurated in 2009 in Mauritius, which connected it to other African countries and India through a satellite and fibre optic network. • Visa Liberalization – visa on arrival India - Seychelles Background

• India’s bilateral engagement with Seychelles has evolved over our historical contacts and continuous support to Seychelles for its security, even as our bilateral trade remains modest. • Today, India-Seychelles relations are characterized by close friendship, understanding and cooperation. • Diplomatic ties were established with Seychelles after its independence in 1976. • It was in the year 1770 that a small group of five Indians landed in Seychelles as plantation workers along with seven African slaves and 15 French colonists, and were recorded as the first inhabitants of the Islands. • During the British colonial period, Seychelles was governed from the Bombay Presidency for some time, with regular shipping links and flow of goods and essential commodities from India. • These trade links facilitated migration of an Indian trading community looking for greener pastures having reached a saturation point in East Africa. • The number of PIOs with Seychelles citizenship is estimated to be around 10,000 (or 11% of the population), which is significant in a country with a total population of 96,000 • Most of the retail business including grocery stores and supermarkets are owned by the Tamil PIO community, while the real estate business and construction industry are dominated by the Gujarati PIO community. Defence and Security Cooperation

• Mutual Concern: Growing piracy menace and other economic offences in the strategic Indian Ocean region • India has gifted Fast Interceptor Boats, Dornier maritime surveillance aircraft • India has installed coastal surveillance radar systems in Seychelles in 2015 enabling better coastal security for Seychelles • Biennial joint military exercise since 2001 – ‘LAMlTYE’ • India offers EEZ surveillance for Seychelles • Humanitarian Assistance and Disaster Relief (HADR) operation in Mozambique & Seychelles • India offered a second line of credit for the defence and maritime security cooperation of Seychelles for an amount of USD 100million. Development Assistance • Indian Technical and Economic Cooperation Programme (ITEC) • Training & Capacity Building – IT, Banking, Bureaucracy, Police, Military • Essential equipment – Buses, Computers, Ventilators, Ultrasound scanners PM Modi’s Visit in 2015

• It was the first Prime Ministerial level visit from India in 34 years • PM Modi inaugurated the Coastal Surveillance Radar System (CSRS) Project, announcement the gifting of a second Dornier aircraft • Renewable Energy Cooperation – Founding members of International Solar Alliance (ISA) • Hydrography • Agreement on the development of facilities on Assumption Island • Blue Economy Protocol signed A Strategic Gain