The Union Cabinet, chaired by Prime Minister Narendra Modi today approved the opening of a new Consulate General of India in Addu City, Maldives in 2021. The move is part of India's larger outreach in South Asia and the Indian Ocean Region (IOR). Analysts say that the pro-active move will help protect India's interests in the security and economic domains, as well as bolstering historic people-to-people ties between the two countries. 

The move is especially important in view of China's attempts to muscle in inside the archipelago, which is strategically located close to international commercial shipping lanes.

According to an official statement, India and Maldives share ethnic, linguistic, cultural, religious and commercial links steeped in antiquity. Maldives occupies an important place in the 'Neighbourhood First Policy' and the 'SAGAR’ (Security and Growth for All in the Region) vision of the Indian government.

"Opening of a Consulate General in Addu City will help augment India's diplomatic presence in Maldives and make it commensurate with the existing and aspired level of engagement," the government said.

The momentum and energy in the bilateral relationship between the two countries has reached unprecedented levels under the leadership of PM Modi and President Solih, analysts say.

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"This is also a forward-looking step in pursuit of our national priority of growth and development or 'Sabka Saath Sabka Vikas'. Augmentation of India's diplomatic presence will, inter-alia, provide market access for Indian companies and bolster Indian exports of goods and services. This would have a direct impact in augmenting domestic production and employment in line with our goal of a self-reliant India or 'Atmanirbhar Bharat'," the Ministry of External Affairs added.