Indian investments in the Maldives are safe despite the change of Government, senior Indian officials said.
“It is business as usual as far as Indian investments and economic interests are concerned. While officially nothing has yet been conveyed to us, unofficially many senior officials in the new Government have told Indian companies that nothing will change despite Tuesday's incidents,” a senior official of a South-based company with presence in the island nation told Business Line .
Dr Waheed Hassan replaced Mr Mohamed Nasheed as President of Maldives on Tuesday following a revolt by the police.
India, which is geographically close to Maldives, is among the largest investors there.
Speaking to Business Line in December last year on the sidelines of the inauguration of modernisation of Male International Airport, the Indian High Commissioner to Maldives, Mr Dnyaneshwar M. Mulay, had pointed out that there had been a revolution of sorts in India's business and economic relations with Maldives during the past three years.
In December 2011, India had commitment and pipeline investments of about $900-950 million compared with $50-60 million before 2008 when the now deposed President, Mr Nasheed, had taken over, the source indicated. In addition, the Indian Government has extended assistance of $350-370 million.
The largest chunk of Indian private investment is being made by the GMR Group, which is taking up the modernisation of the airport in Male. By 2014, GMR would have invested $400-450 million in the project.
“For a country that has a GDP of $1 billion to have $950 million commitment from one country, we need to see the proportion. We need to compare it with $60-65 million for 30-35 years prior to 2008 when President Nasheed took over,” an official said.
While the Sriram Group has set up the first PPP project in education in Maldives, the Tata Group is constructing 450 houses, Suzlon and Bommidala groups have a presence in the renewable energy sector. Besides, an Indian company is going to start a University there apart from building a stadium, sports complex and wellness resort, the official added.
A ferry service from Cochin is also expected to boost trade and investment ties, sources indicated.