What Role Does India Play in Supporting the Maldives?

Male, July 25 (NationPress) As Prime Minister Narendra Modi is welcomed to the Maldives, the nation commemorates its 60th anniversary of independence. President Mohamed Muizzu expressed his enthusiasm regarding the commencement of Free Trade Agreement (FTA) negotiations between the two countries.

This year marks a significant milestone as the two nations celebrate six decades of diplomatic relations. In the presence of PM Modi, Muizzu noted the signing of four Memorandums of Understanding (MoUs) and three agreements across various sectors on Friday. He acknowledged India's crucial role in aiding the Maldives in overcoming economic and liquidity challenges.

"Today, we unveiled a commemorative stamp celebrating 60 years of formal diplomatic ties between our nations. This afternoon, Prime Minister Modi and I engaged in in-depth discussions, reflecting on our shared developmental successes and outlining a clear vision for future collaboration," Muizzu stated.

This visit marks Prime Minister Modi's third trip to the Maldives—following visits in 2018 and 2019—and is the first by a Head of State or Government during President Muizzu's term, which began in November 2023.

"In our efforts to enhance cooperation, PM Modi and I had the privilege of witnessing the exchange of four MoUs and three agreements concerning vital areas. Notably, we finalized a Line of Credit agreement worth USD 565 million, which will support priority projects in sectors such as defence, sports, healthcare, education, and housing. Furthermore, I am excited to announce the initiation of negotiations for a Free Trade Agreement between India and Maldives.

"This landmark initiative signifies a crucial advancement in fortifying our economic relations. We appreciate India's pivotal role in supporting the Maldives through a USD 400 million currency swap facility and an interest-free one-year rollover of the Treasury bill due in May 2025," the Maldivian President stated.

He noted that, upon completion, the Greater Male connectivity project will serve as a lasting symbol of the enduring partnership between the two nations. He thanked India for providing 72 vehicles to the Maldives National Defence Force (MNDF).

Referring to India's provision of essential commodities as a "key facet" of bilateral cooperation, Muizzu remarked, "India's continued assistance through the export of essential commodities is vital to our bilateral cooperation under the longstanding trade agreement. Today, we inaugurated a significant project funded under India's Line of Credit assistance for road development. PM Modi and I reviewed the progress of ongoing projects funded by the line of credit and impactful community development initiatives."

Expressing gratitude for India's support, he added, "I sincerely thank India for the provision of 72 vehicles to the MNDF. The handover of the remaining 3,300 housing flats from the 4,000 housing units project represents a significant advancement in my government's commitment to addressing housing needs throughout the Maldives. I also thank the Indian government for being the Maldives's principal partner in health, as the donation of medical cubes serves as a vital asset for our geographically dispersed nation."

Describing India as a "key source market" for Maldivian tourism, Muizzu shared that he and PM Modi discussed strategies for expanding the tourism sector, including the launch of direct flights.

"India continues to be an essential source market for Maldivian tourism. We explored ways to enhance this crucial sector through increased cooperation and connectivity, including the establishment of direct flights. Regarding environmental partnerships, we examined opportunities for technical support in capacity building, waste management, biodiversity conservation, renewable energy, and water and sanitation," he stated.

He voiced the Maldives' support for India as the host of COP33 and expressed confidence in India's ability to lead global efforts toward a successful and impactful outcome.

"The Maldives will fully support India as the host of COP33. We have faith in India's capability to steer global initiatives toward a successful and impactful resolution. Our people-to-people connections have long formed the foundation of the relationship between the Maldives and India. Through cultural exchanges, tourism, education, and familial ties, we continue to enhance mutual understanding and goodwill between our nations. Looking ahead, we are dedicated to further strengthening our collaboration with India across various sectors through high-level visits," he concluded.