India Concerns Over Maldives' China Trade Deals

India has expressed concerns over recent trade agreements signed by the Maldives with China and Turkey, which could threaten the archipelago's fiscal stability by leading to revenue loss. These agreements, including a free trade agreement with China that took effect on January 1, could increase the Maldives' balance of payments deficit and expose it to supply chain risks. India, which has extended significant financial assistance to the Maldives, will consider these developments in its policy decisions towards the nation. The Maldives' economy is already burdened with substantial external debt, primarily owed to China and India, heightening concerns of a possible default. The Indian Ministry of External Affairs has highlighted these issues without explicitly naming any countries. Diplomatic relations between India and the Maldives have seen recent improvements, with both nations engaging in high-level visits.