India-Maldives Ferry Agreement Boosts Maritime Connectivity with $6.6M Grant
| 2025-05-19
India and the Maldives have signed 13 memorandums of understanding (MoUs) to enhance ferry services across the island nation.
India funds 13 new ferry projects in Maldives to strengthen transport links and community development.
India and the Maldives have signed 13 memorandums of understanding (MoUs) to enhance ferry services across the island nation, backed by a grant of MVR 100 million (approximately USD 6.6 million) under the High Impact Community Development Project (HICDP) Phase III.
The agreements, signed on 18 May in Malé, aim to expand maritime connectivity, improve transport infrastructure, and uplift community livelihoods. The initiative is part of a broader grant assistance programme from the Government of India to the Maldives, focused on delivering tangible benefits to local communities.
New projects to expand inter-island transport
The MoUs were formalised in a ceremony at the Ministry of Foreign Affairs in Malé. Maldivian Minister of Foreign Affairs Abdulla Khaleel and Indian High Commissioner to the Maldives G Balasubramanian signed the agreements on behalf of their respective governments. Mohamed Ameen, the Maldivian Minister of Transport and Civil Aviation, signed as the representative of the implementing agency.
According to the Maldivian Foreign Ministry, the ferry enhancement projects under HICDP Phase III represent a significant investment in the country’s maritime infrastructure, which is vital for inter-island transport and access to essential services.
“This partnership goes beyond infrastructure,” said Khaleel during the signing ceremony. “These projects are lifelines for communities—designed to solve local challenges, support livelihoods, and bring lasting socio-economic progress.”
The newly launched projects fall within President Mohamed Muizzu’s strategic vision to complete a national ferry network by the end of 2025, earlier than the original target of 2027.
Strengthening bilateral ties through development cooperation
The Indian High Commission in Malé said the initiative reflects India’s ongoing commitment to regional connectivity and neighbourly cooperation.
“India is happy to partner with the Government of Maldives in enhancing maritime connectivity, a lifeline for the people of the Maldives,” the mission posted on social media platform X (formerly Twitter).
Minister Ameen described the projects as a major step forward in accelerating the country’s high-speed ferry network, which now connects 81 islands across nine atolls.
“The MoUs signed today will further expand services, reinforcing the strong bilateral relationship between India and the Maldives,” he said, thanking the Indian government for its continued support.
Part of India’s regional development assistance
The HICDP scheme is an Indian government-funded initiative aimed at delivering high-impact, small-scale projects in neighbouring countries. The latest phase of the scheme in the Maldives was announced during President Muizzu’s state visit to India in October 2023.
The programme focuses on areas such as education, health, infrastructure, and transport, with ferry services playing a critical role in connecting remote island communities to economic and administrative centres.
“The successful implementation of these projects will pave the way for deeper cooperation and shared development,” Khaleel said, adding that India’s assistance has always aligned closely with the Maldivian people’s needs.
India-Maldives ties under new leadership
The ferry project announcement comes at a time when both nations are reaffirming their strategic partnership, particularly under the new administration of President Muizzu, who took office in late 2023. His government has stated its intention to strengthen national infrastructure, especially transportation networks, as a priority.
Despite some recent diplomatic frictions, India remains a key development partner for the Maldives, having previously funded multiple projects in the areas of housing, sanitation, and healthcare.
Analysts note that maritime transport is central to the Maldives’ economic and social cohesion, given its dispersed geography of over 1,100 islands. Efficient ferry systems are seen as critical to sustainable development, improving access to education, healthcare, and commerce for remote populations.
The signing of the latest ferry project agreements marks another chapter in the India-Maldives development partnership, with both governments expressing optimism about the long-term impact of enhanced connectivity on national and regional stability.
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