India’s Economic Support to Maldives, Muizzu Thanks Modi

Maldivian President Mohamed Muizzu held extensive discussions with Indian Prime Minister Narendra Modi during his first state visit to India. Both leaders expressed their commitment to deepening bilateral ties, with Modi reaffirming the Maldives’ critical role in India’s ‘Neighbourhood First’ policy and SAGAR (Security and Growth for All in the Region) vision.

“India and Maldives share centuries-old relations. The Maldives holds an important position in our neighborhood policy and SAGAR vision,” PM Modi remarked, emphasizing India’s role as a first responder to the Maldives during crises.

Muizzu, who assumed office last November, visited India with the aim of securing financial assistance to stabilize his country’s faltering economy. The relationship between the two nations had faced challenges after Muizzu’s ‘India Out’ campaign, which led to the eviction of Indian troops from the Maldives. However, his anti-India rhetoric has since softened, though India remains cautious of his pro-China inclinations.

During the discussions, PM Modi announced crucial financial aid for the Maldives, including a $400 million currency swap agreement and an additional Rs 3,000 crore. The State Bank of India also rolled over $100 million of Maldives’ Treasury Bench.

Muizzu expressed his gratitude towards India, referring to the country as a “key partner” that has always supported the Maldives in times of need. He extended an invitation to PM Modi to visit the Maldives and called for more Indian tourists to boost the island nation’s vital tourism sector, which had faced challenges due to an earlier boycott.

PM Modi and President Muizzu also virtually inaugurated the redeveloped Hanimaadhoo International Airport, a project completed with Indian support. Additional agreements between the two nations include:

1. The introduction of the Rupay card in the Maldives.
2. Talks on opening an Indian consulate in Addu and a Maldivian consulate in Bengaluru.
3. India’s handover of 700 social housing units to the Maldives.
4. Extension of a $50 million Treasury Bill by India for another year to provide budgetary relief to the Maldives.
5. Commencement of discussions on a Free Trade Agreement between India and the Maldives.

Aakhir Tak Editor-in-Chief

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