During a meeting on Monday, Prime Minister Narendra Modi reaffirmed the Maldives’ strategic importance in India’s ‘Neighbourhood First’ policy and the SAGAR (Security and Growth for All in the Region) vision, while welcoming Maldivian President Mohamed Muizzu on his first state visit to India since assuming office. The discussions focused on deepening ties after a period of strained relations between the two nations.
“India and Maldives share centuries-old relations. As Maldives’ nearest neighbour and close friend, it holds an important position in our neighbourhood policy and SAGAR vision. India has always played the role of first responder for the Maldives,” PM Modi emphasized.
Mending Relations and Strengthening Cooperation
President Muizzu’s visit follows his election on an ‘India Out’ campaign, which called for the withdrawal of Indian military personnel from the island nation. Despite this, both leaders expressed their commitment to enhancing ties, with PM Modi highlighting India’s support for the Maldives during times of crisis and their shared vision for economic and maritime security cooperation.
“Development partnership is a key pillar of India-Maldives relations. We have always prioritized the needs of the Maldivian people,” Modi added.
India’s Financial Assistance and Economic Partnership
In a significant move to support the Maldives’ economic recovery, PM Modi announced critical financial aid, including the rollover of $100 million by the State Bank of India for the Maldives’ Treasury Bench. Additionally, a $400 million and Rs 3,000 crore currency swap agreement has been signed to aid the Maldivian economy.
India will also extend a $50 million Treasury Bill rollover for another year to provide budgetary relief to the Maldives government.
Economic cooperation between the two nations extends to infrastructure development. Modi and Muizzu virtually inaugurated the redeveloped Hanimaadhoo International Airport, a project supported by India aimed at boosting tourism and economic growth in the Maldives. The leaders also committed to expediting the Greater Male Connectivity Project, which will link key islands through modern transport networks, further strengthening the bilateral relationship.