Explanation:

• The Union Cabinet chaired by PM Modi on May 25, 2021, approved the opening of a new consulate General of India in Addu City of Maldives in 2021. 
• The decision has been taken in the reflection of the significance that India attaches to its ties with the strategically located island nation. Both the countries share ethnic, cultural, religious, linguistic, and commercial links.
• India’s decision of expanding its diplomatic presence in the island nation has come amid China’s consistent efforts in increasing its influence in the Maldives.
• The Maldives is one of the key maritime neighbour of India in the Indian Ocean Region.

Maldives :

• Capital - Male
• Currency - Maldives Rufiyaa