 "India strengthens strategic ties with Maldives through major economic, defence deals")
India extended a Rs 4,850 crore credit line for the Maldives on Friday and agreed to finalise a free trade agreement shortly, with Prime Minister Narendra Modi stressing New Delhi’s pride in being the “most trusted” friend of the Indian Ocean archipelago.
PM Modi had detailed meetings with Maldivian President Mohamed Muizzu hours after arriving in Male for a two-day visit to enhance ties in a number of vital areas, including commerce, military, and marine security.
“For us, it is always friendship first,” Modi said in his media statement, adding the “roots of our relations are older than history, and as deep as the ocean.”
The results of the Modi-Muizzu negotiations marked a significant improvement in the relationship following a period of stress and discomfort. Since Muizzu took office in November 2023 on the strength of an “India Out” campaign, the rekindled fervour in the relationship takes on significance.
The prime minister outlined his vision for the relationship, saying that the friendship between India and the Maldives will always “remain bright and clear” regardless of the situation.
We have chosen to provide the Maldives with a line of credit of USD 565 million (Rs 4,850 crore) in order to revitalise our development cooperation, Modi stated.
Impact Shorts
More ShortsHe stated that this sum will be allocated to infrastructure development projects in the Maldives that align with the priorities of the citizens’ of the nation.
At a media briefing, Foreign Secretary Vikram Misri said a key pact inked following the talks will reduce the Maldives’ annual debt repayment to India by 40 per cent.
It is learnt that China’s increasing assertive behaviour and its implications for regional security figured in the delegation-level talks between the two sides.
To a question on whether concerns over China’s activities in the region figured in the talks, Misri only said India continues to work closely with the Maldives on any issue that might “impinge not just our security but the common security of the region”.
In his remarks, PM Modi said the two sides will soon work towards finalising a bilateral investment treaty and that the negotiations on a free trade agreement have already begun.
Modi and Muizzu also jointly inaugurated a number of India-assisted projects, including a new defence ministry building in Male, roads and drainage systems in Addu city and 3,300 housing units in Hulhumale.
The prime minister also handed over 72 vehicles and equipment for use by the Maldives National Defence Force.
The defence ministry building is a “concrete building of trust” and it is a symbol of our “strong partnership”, the prime minister said.
“India will continue to support Maldives in the development of its defence capabilities. Peace, stability and prosperity in the Indian Ocean region is our common goal,” he said.
The comments came against the backdrop of New Delhi’s concerns over China’s attempts to expand its influence over the Maldives.
In his remarks, Modi said the Maldives holds an “important place” in both India’s “Neighbourhood First” policy and its MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) vision.
“India is also proud to be the most trusted friend of Maldives. Be it a disaster or a pandemic, India has always stood by as a ‘first responder’,” he said.
The prime minister also referred to India and the Maldives unveiling a vision for a comprehensive economic and maritime security partnership during Muizzu’s visit to New Delhi in October last year.
“Now it is becoming a reality. And as a result of that, our relations are touching new heights,” he said.
Modi also highlighted the functioning of India’s UPI (Unified Payments Interface) system in the Maldives.
“The speed with which UPI is being promoted in Maldives will give a boost to both tourism and retail,” he said.
“We have taken several steps to accelerate our economic partnership. To accelerate mutual investment, we will soon work towards finalising the bilateral investment treaty. Negotiations on a free trade agreement have also begun,” Modi said.
The prime minister arrived here from London in the second and final leg of his two-nation trip.
Modi was accorded a warm welcome with Muizzu and a number of top ministers of his government receiving him at the Velena international airport.
Hours later, Modi was accorded a colourful ceremonial welcome and a guard of honour at the iconic Republic Square.
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