To restrict Chinese influence, India to extend financial package to Maldives
India plans to offer a financial package to revive covet-19 hit Maldivian economy
To revive Covid-19 induced economic crisis, India is set to announce a 'substantial financial assistance package' for Maldives.
According to Economic Times, the package also aims to restrict any Chinese influence over the small Indian Ocean island country.
Maldives economy has taken a hit due to covid-19 pandemic, thus the package is going to work based on the requirement to revive the economy of the island country.
To tide over the liquidity crisis, India has already extended assistance of $400 million through an extended currency swap arrangement that will help the country, the report says.
As per the report, last week Indian high commissioner to Maldives handed over a symbolic cheque to mark implementation of nine projects in the Maldives under the High Impact Community Development Projects (HICDP) scheme.
HICDP schemes constitute an important dimension of the dynamic development partnership between India and the Maldives. These projects are driven by needs of communities in the island and implemented by city and local councils.
This is in contrast to China’s BRI projects which completely disregard local requirements and focus solely on China’s needs under loans that are pushing countries into a debt trap.
Indian development assistance in the Maldives covers a wide swathe of sectors including fisheries, ecotourism and sustainable development, sports infrastructure, coastal protection and includes projects such as procurement of vehicles and machinery for city councils, infrastructure upgrade of critical institutions, construction of school classrooms, development of community centres, the report adds.