Maldives President Mohamed Muizzu and Indian Prime Minister Narendra Modi held extensive talks on Monday to reinforce bilateral ties, with a focus on economic cooperation, maritime security, and free trade. Despite the recent strain in relations, both leaders reaffirmed their commitment to deepening the partnership between the two neighboring countries.
Prime Minister Modi emphasized the importance of the Maldives in India’s ‘Neighbourhood First’ policy and the SAGAR (Security and Growth for All in the Region) vision. He highlighted India’s consistent role as the Maldives’ primary supporter during times of crisis. “India and Maldives share a deep-rooted relationship that spans centuries. As the Maldives’ closest neighbor and friend, India has always been the first responder in times of need,” PM Modi stated during the meeting.
This marked President Muizzu’s first state visit to India since taking office in November last year. Muizzu, who initially ran a campaign centered on reducing India’s presence in the Maldives, has since softened his stance. He landed in New Delhi on Sunday with the aim of restoring relations between the two nations while addressing the economic challenges back home.
India’s Continued Support for the Maldives
During their discussions, PM Modi announced India’s commitment to providing critical financial assistance to help the Maldives weather its current economic difficulties. He underscored India’s dedication to prioritizing the needs of the Maldivian people through development partnerships. “Development partnership is a cornerstone of our relationship with the Maldives. We will always support the priorities of the Maldivian people,” PM Modi said.
He further announced several financial measures, including a $100 million rollover of the State Bank of India’s Treasury Bench for the Maldives. Additionally, India has signed a $400 million and Rs 3000 crore currency swap agreement to further bolster the Maldivian economy. In a significant gesture, PM Modi also revealed that India would roll over a $50 million Treasury Bill for another year to provide essential budgetary relief to the Maldivian government.
Muizzu expressed gratitude for India’s support and acknowledged India as a key partner. “India has consistently stood by us in times of need. I am thankful to PM Modi and the Indian government for their generosity,” Muizzu remarked during the press conference. He also extended an invitation to PM Modi to visit the Maldives and encouraged more Indian tourists to visit the island nation, which has been facing a decline in tourism revenue following a boycott by India.
“India is our largest source of tourism, and I look forward to welcoming more Indian tourists to the Maldives,” Muizzu added, stressing the importance of tourism in reviving the Maldivian economy.
Infrastructure and Strategic Cooperation
In addition to financial aid, the discussions between PM Modi and Muizzu also centered on infrastructure development. The two leaders virtually inaugurated the redeveloped Hanimaadhoo International Airport, a project that was supported by Indian funding. Other key agreements between the two nations include the introduction of Rupay cards in the Maldives and talks on the opening of consulates—an Indian consulate in Addu and a Maldivian consulate in Bengaluru.
Both countries have also agreed to start negotiations on a Free Trade Agreement (FTA), which could significantly boost economic cooperation between the two neighbors. Furthermore, India handed over 700 social housing units built with its assistance to the Maldivian government as part of its ongoing development partnership.
The visit highlights both nations’ shared commitment to strengthening their partnership, despite past tensions. With economic and security cooperation at the forefront, India and the Maldives are poised to work together to ensure stability and growth in the region.