In a significant move to support the Maldives during a foreign exchange crisis, India has approved a financial aid package worth over ₹6,300 crore. This development occurred during talks between Indian Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu, marking a pivotal moment in India-Maldives relations.
India and the Maldives have unveiled a new vision document that focuses on comprehensive economic and maritime security partnerships. The aid package includes a $400 million currency swap arrangement and ₹3,000 crore support to stabilize the Maldivian economy. Additionally, discussions on a potential free trade agreement were initiated to further strengthen trade relations between the two nations.
India also pledged to enhance the Maldives’ maritime surveillance capabilities by providing radar systems and other essential equipment. With the Maldives’ extensive exclusive economic zone, both nations are committed to addressing challenges such as piracy, illegal fishing, and drug trafficking.
President Muizzu, who once campaigned on an “India Out” platform, acknowledged India’s continued support in times of need. He expressed gratitude for India’s role in helping stabilize the Maldives’ economy and recognized the deep socio-economic and infrastructure collaboration.
Prime Minister Modi emphasized India’s unwavering commitment to the Maldives, highlighting past support in areas such as development, infrastructure, and disaster relief. Modi also noted India’s role as the “first responder” during critical moments, such as the COVID-19 pandemic.
The two sides agreed to strengthen ties through various initiatives, including the launch of India’s RuPay card in the Maldives and the inauguration of a new runway at Hanimaadhoo International Airport. India will continue to support the Maldives in enhancing maritime security, information sharing, and disaster management.
As both nations continue to deepen their partnership, President Muizzu invited Prime Minister Modi to visit the Maldives in 2025 to celebrate 60 years of diplomatic relations. The future looks promising for both countries as they work together for peace, prosperity, and stability in the Indian Ocean region.
