PM Narendra Modi and President of Maldives H. E. Dr. Mohamed Muizzu met on 7 October 2024 and comprehensively reviewed the entire gamut of bilateral ties.
India & Maldives Signs Security Agreement
PM Narendra Modi and President of Maldives H. E. Dr. Mohamed Muizzu met on 7 October 2024 and comprehensively reviewed the entire gamut of bilateral ties. PM of India underscored the importance attached by India to its relationship with Maldives under its ‘Neighbourhood First’ Policy and Vision SAGAR, and reaffirmed India’s unwavering commitment to assist Maldives on its developmental journey and priorities.
Maldives President’s Diplomatic U-turn
The Maldives will not act to undermine India’s security and views New Delhi as a “valued partner and friend“, and cooperation in several fields – including defence – will “always be a priority“, President Mohamed Muizzu said as he arrived in the national capital for his first bilateral visit.
“Maldives would never do anything to undermine security of India. While we enhance cooperation with other countries in various sectors, we remain committed to ensuring our actions do not compromise the security and stability of our region…” he told The Times of India in an extensive interview yesterday.
New Delhi will also support Malé in enhancing the surveillance and monitoring capability of the Maldivian National Defence Force by providing “radar systems and other equipment” to the island nation. As Muizzu met PM Narendra Modi in New Delhi, India agreed to do its bit to help the Maldives sail through the economic crisis and an imminent debt default.
Economic Cooperation
The RBI entered into a currency swap agreement with the Maldives Monetary Authority under the SAARC Currency Swap Framework 2024-27. The agreement, which will remain valid till June 18, 2027, will make the MMA eligible for financing support from the RBI amounting to $400 million under the USD/Euro Swap Window and Rs 3,000 crore under the INR Swap Window.
India To Provide ₹6.3k-cr Aid Package To Maldives
India agreed to provide financial support of more than ₹6,300 crore to the Maldives to tide over a foreign exchange crisis as the two sides discussed a potential trade deal, with Maldivian President Muizzu holding talks with PM Narendra Modi for a reset of bilateral relations. Modi and Muizzu jointly launched India’s RuPay Card in the Maldives to boost tourism and economic cooperation and inaugurated the new runway of Hanimaadhoo international airport that was built with an Indian line of credit of $132 million.
The Indian side also handed over 700 out of 4,000 housing units being developed with Indian aid to overcome a housing shortage. India will support the Maldives on hydrographic matters, and both sides will strengthen cooperation in disaster response and risk mitigation. Modi also accepted Muizzu’s invitation to visit the Maldives in 2025 to mark the 60th anniversary of diplomatic ties.
