How Did PM Modi and President Muizzu Strengthen India-Maldives Ties?

Male, July 26 (NationPress) During the official visit of Prime Minister Narendra Modi to Male, invited by President Mohamed Muizzu, multiple agreements spanning various sectors were signed on Friday, solidifying the bilateral relationship between India and Maldives, as stated by the Ministry of External Affairs (MEA).

A series of memorandums of understanding were established between PM Modi and President Muizzu, which include: an agreement for a Line of Credit (LoC) amounting to Rs 4,850 crore to the Maldives; a revised agreement to reduce the Maldives' annual debt repayment obligations on Indian government-funded LoCs; the finalization of the India-Maldives Free Trade Agreement (FTA); a MoU for collaboration in Fisheries and Aquaculture; a MoU between the Indian Institute of Tropical Meteorology (IITM) and the Maldives Meteorological Services (MMS); and a MoU to share successful digital solutions for enhancing digital transformation between the Ministry of Electronics and Information Technology of India and the Ministry of Homeland Security and Technology of Maldives.

Additionally, there was a network-to-network agreement between India's NPCI International Payment Limited (NIPL) and the Maldives Monetary Authority (MMA) concerning the Unified Payments Interface in the Maldives, as stated by MEA spokesperson Randhir Jaiswal.

PM Modi and President Muizzu jointly released commemorative stamps marking the 60th anniversary of India-Maldives diplomatic relations, according to MEA Spokesperson Jaiswal.

The commitment to bolster the bilateral relationship was evident when PM Modi and President Muizzu inaugurated various projects, including the delivery of 3,300 social housing units in Hulhumale, the inauguration of a roads and drainage project in Addu City, and the launch of 6 High Impact Community Development Projects. They also handed over 72 vehicles and other equipment, along with two BHISHM Health Cube sets.

In a joint press statement, PM Modi expressed his heartfelt congratulations to President Muizzu and the people of the Maldives on the memorable occasion of their 60th Independence.

Reflecting on the significance of the occasion, PM Modi thanked President Muizzu for his invitation as the Guest of Honour on this momentous milestone.

"This year also marks 60 years of diplomatic relations between India and Maldives. However, the roots of our relationship are older than history itself and as deep as the ocean. The commemorative stamp released today, featuring the traditional boats of both our nations, symbolizes that we are not just neighbours, but fellow voyagers on a shared journey," PM Modi remarked, as quoted by the MEA.

"India is the closest neighbour of the Maldives. The Maldives plays a crucial role in India’s Neighbourhood First policy and our MAHASAGAR vision. We pride ourselves on being the Maldives' most trusted ally. Whether in natural disasters or health crises, India has always been the Maldives' 'First Responder'. We have worked closely to ensure the supply of vital commodities and supported economic recovery following Covid," PM Modi added.

During President Muizzu's visit to India in October 2024, both nations shared a vision for a comprehensive economic and maritime security partnership, which is now becoming a reality as their bilateral ties reach unprecedented heights, with several significant projects inaugurated, PM Modi noted.

"The 4,000 social housing units built with India's assistance will signify a new beginning for many families in the Maldives — a place they can genuinely call home. Projects like the Greater Male Connectivity Project, the Addu Road Development Project, and the redevelopment of Hanimaadhoo International Airport will transform this region into a crucial hub for transit and economic activity," PM Modi emphasized.

With the upcoming launch of a ferry system, connectivity between various islands will soon become much more efficient. PM Modi stated, "Distances between islands will not be measured by GPS but simply by ferry time!"

"To inject new momentum into our development partnership, we have decided to extend a Line of Credit of $565 million — nearly five thousand crore rupees — to the Maldives for infrastructure development projects aligned with the priorities of the Maldivian people," PM Modi added.

"We are taking numerous steps to accelerate our economic partnership. To enhance mutual investment, we will soon work towards finalizing a Bilateral Investment Treaty. Discussions on a Free Trade Agreement have also commenced. Our current aim is — From paperwork to prosperity!" the Prime Minister stated.

With the local currency settlement system, trade can now occur directly in Rupees and Rufiyaa. The swift adoption of UPI in the Maldives will further reinforce both the tourism and retail sectors," he emphasized.

"Cooperation in defence and security represents a mark of mutual trust. The inauguration of the Ministry of Defence building today stands as a tangible symbol of that trust — a testament to our robust partnership," PM Modi remarked.

"Our collaboration will also extend into the realm of weather science. Regardless of weather conditions, our friendship will remain bright and clear!" he added.

"India will continue to support the development of the Maldives' defence capabilities. The shared goal is peace, stability, and prosperity in the Indian Ocean Region. Together, via the Colombo Security Conclave, we will fortify regional maritime security," he stated.

"Climate change poses a significant challenge for both our nations. We have agreed to promote renewable energy, and in this respect, India will share its expertise with the Maldives," he noted.

"Once again, on this historic occasion, I convey my sincere congratulations to you and the people of the Maldives. I also express my gratitude for the warm welcome. I reaffirm that India will stand by the Maldives at every step on its path to development and prosperity," PM Modi concluded his address, expressing thanks to President Muizzu.