Marking a major turnaround in the ties after a spell of unease, Prime Minister Narendra Modi on Friday held wide-ranging talks with Maldivian President Mohamed Muizzu, focusing on consolidating cooperation in areas of trade, defence and infrastructure.
PM Modi landed in Male on Friday morning to a warm welcome with Muizzu and a number of top ministers of his Government receiving the PM at the Velena internationalairport, reflecting the importance Male attached to the trip. Hours later, he was accorded a ceremonial welcome and a guard of honour at the iconic Republic Square.
“Deeply touched by the gesture of President Muizzu to come to the airport to welcome me. I am confident that India-Maldives friendship will scale new heights of progress in the times to come,” Modi wrote in a social media post. The two leaders held a one-on-one meeting before settling down for delegation-level talks. This is perhaps the first State visit of a head of Government that Muizzu is hosting since assuming office in November 2023.
The turnaround in the bilateral ties assumes significance as Muizzu, known to be close to China, came to power in the island nation in November 2023 on the back of an “India Out” campaign. Muizzu’s policies in the first few months of his presidency resulted in severe strain in the ties. Within hours of his oath, he had demanded the withdrawal of Indian military personnel from his country. Subsequently, India replaced the personnel with civilians.
The Indian military personnel were deployed to the Maldives to maintain and operate two helicopters and an aircraft, which were used for humanitarian and rescue operations. It is believed that New Delhi’s sustained efforts, including its assistance to the island nation to deal with its economic woes, helped bring the relations back on track.
“We’ve continued to work at it, and I think the result is there for you to see,” Foreign Secretary Vikram Misri said on Tuesday when asked about the turnaround in the ties. The Maldives is one of India’s key maritime neighbours in the Indian Ocean Region and the overall bilateral ties, including in areas of defence and security, witnessed an upward trajectory under the previous Governments in Male.
During his two-day visit to Maldives, Modi reaffirmed India’s commitment to supporting the island nation’s development through a wide-ranging partnership. A major highlight of the visit was the signing of an agreement to extend a new Line of Credit (LoC) worth Rs 4,850 crore to the island nation.
This financial assistance is expected to fund key infrastructure and developmental projects across Maldives. This apart, an amendatory agreement was signed to reduce the country’s annual debt repayment obligations on previous Indian-funded LoCs, providing further financial relief to the nation.
This is the second leg of PM Modi’s two-nation tour after his ‘landmark’ United Kingdom trip, which included the signing of the India-UK Free Trade Agreement and high-level engagements aimed at strengthening bilateral cooperation. In Maldives, Modi will be taking part in the 60th Independence Day celebrations of the island nation as the Guest of Honour.
Lauding the bilateral relations between the two countries, Modi said that India is Maldives’ closest neighbour. While addressing a briefing with Muizzu, he said, “For us it is always friendship first.”
Modi said that though India and Maldives are celebrating 60 years of their diplomatic relations, the “roots go as deep as the sea”. ...The roots of our relations are older than history and as deep as the sea. The commemorative stamps released today display traditional boats of both nations. This reflects that we are not just neighbours but also co-passengers.”
Modi said that the friendship between the two countries “will remain bright and clear.” He also announced that India would always support Maldives to strengthen its defence capabilities.
PM Modi said that a free trade agreement between the two countries has started. “To speed up our economic partnership, we have taken several steps. To speed up our shared investment, we will soon work toward finalising the Bilateral Investment Treaty. Talks on Free Trade Agreement have also begun. Now, our goal is ‘from paperwork to prosperity,” he added.
Modi said that with the local currency settlement system, New Delhi will be able to have direct trade between Rupee and Rufiyaa. “The pace with which UPI is gaining momentum in Maldives, tourism and retail will strengthen,” he said.
The Maldives National Defence Force earlier in the day presented Modi with the traditional ‘Haiykolhu’, a cherished Maldivian gesture of hospitality and honour.
Aimed at strengthening economic ties and expanding bilateral trade, the two nations have also launched formal negotiations for the India-Maldives Free Trade Agreement (IMFTA).
Several Memorandums of Understanding (MoUs) were also signed to deepen cooperation in various sectors. These include agreements on fisheries and aquaculture, meteorological collaboration between India’s Institute of Tropical Meteorology and the Maldives Meteorological Services along with the sharing of scalable digital governance solutions to promote digital transformation. A MoU was also signed for the recognition of Indian Pharmacopoeia by Maldivian authorities, which will facilitate smoother trade in pharmaceutical products.
Strengthening financial connectivity, a network-level agreement was concluded between NPCI International Payments Limited and the Maldives Monetary Authority to bring India’s Unified Payments Interface (UPI) to Maldives.
Modi’s visit also featured the inauguration and handing-over of several major development projects funded by India. These included the formal handover of 3,300 social housing units in Hulhumale built under India’s Buyers’ Credit facilities and the inauguration of the roads and drainage system project in Addu City.
Apart from this, six High Impact Community Development Projects (HICDPs) will also be inaugurated in the nation to improve the local infrastructure. India also handed over 72 vehicles and various types of equipment to Maldivian Defence Ministry to bolster their security.