- A direct cargo ferry service between India and Maldives that started is likely to reduce transportation time and cost and boost trade between the two countries.
- Despite geographical proximity, India is currently only the fourth largest trade partner of Maldives.
- China, UAE and Singapore are all ahead of India in terms of their exports to Maldives.
- The ferry will herald direct connectivity for movement of cargo between India and Maldives for the first time and thereby give a boost to bilateral trade.
- It will reduce transportation cost, provide a timely, short and cost-effective means of transportation for goods from India to Maldives and thereby incentivise trade, the government believes.
- Since Maldives is a 100 per cent import dependent country, improved connectivity between India and Maldives will help boost bilateral trade and help economic activity in Maldives.
- The ferry service, which was first announced by Prime Minister Narendra Modi in June 2019 during his visit to Maldives.
- The service will run twice a month and will be operated by Shipping Corporation of India ship.
- It will have a cold storage facility, which will also allow more exports from Maldives of tuna fish and other marine food items which are a speciality of Maldives.
