India has reacted strongly to Maldives' decision of scrapping a 500 million US dollars deal given to Indian firm GMR Group for developing the Male airport, saying it would send a "very negative signal" to foreign investors.

"Whatever legal decision is taken (by Maldives) will have repercussion here," Indian External Affairs Minister Salman Khurshid said in the national capital.

The 500 million US dollar project of modernizing Male airport was awarded to the GMR Group during the tenure of former Maldivian President Nasheed who was ousted in a bloodless coup last year. But the current regime in Maldives Tuesday scrapped the deal, deeming it null and void, thus earning India's wrath.

"The decision to terminate the contract with GMR without due consultation with the company or efforts at arbitration provided for under the agreement sends a very negative signal to foreign investors and the international community," Indian External Affairs Ministry spokesperson Syed Akbaruddin said.

The Ministry also urged Maldives to ensure the security of Indians in the island nation.

"We call upon the Government of Maldives and all concerned parties to ensure that Indian interests in Maldives and the security of Indian nationals are fully protected. India proposes to monitor the situation in Maldives closely and is prepared to take all necessary measures to ensure the safety and security of its interests and its nationals in the Maldives," the spokesperson said.