PM Modi, President Muizzu Sign Key Deals to Boost India-Maldives Ties

• Rs 4,850 crore Line of Credit extended for Maldives infrastructure projects
   
• UPI to be introduced in Maldives under new digital payments agreement
   
• Free Trade Agreement talks launched to boost bilateral economic ties

In a notable diplomatic achievement, Prime Minister Narendra Modi made a state visit to the Maldives as a guest of President Mohamed Muizzu. The visit on the 60th anniversary of Maldivian independence led to a string of high-impact agreements and projects to further strengthen India-Maldives relations in various sectors, a statement by the Ministry of External Affairs (MEA) said.

Speaking to social media platform X, PM Modi said, "This is a testament to the depth, the strength, and the all-encompassing nature of the friendship of India and the Maldives."

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A broad range of Memorandums of Understanding (MoUs) were signed during the visit, solidifying the robust bilateral relationship. The major highlights include:

• A Line of Credit of  Rs  4,850 crore from India to the Maldives
• An amendatory agreement to lighten the annual debt repayment burdens of Maldives on Indian LoCs
• Initiate preparations for India-Maldives Free Trade Agreement (FTA)
• MoUs on cooperation in fisheries and aquaculture, meteorological cooperation, digital public infrastructure, and standards in pharmaceuticals
• MoU between NPCI International and Maldives Monetary Authority (MMA) to facilitate Unified Payments Interface (UPI) service in the Maldives

MEA spokesperson Randhir Jaiswal also confirmed that commemorative stamps were released jointly by the two leaders to celebrate the 60th year of diplomatic relations between the two nations.

Apart from the agreements, some key developmental projects were announced, such as the formal transfer of 3,300 social housing units in Hulhumale under India's Buyers' Credit programme. Furthermore, such infrastructure projects as the Addu city roads and drainage system, six community development projects, and the opening of the Maldivian Ministry of Defence building were inaugurated. India also transferred 72 vehicles, different equipment, and two BHISHM Health Cube medical units.

In a joint press release, PM Modi congratulated President Muizzu and the people of Maldives on the occasion of their independence day and thanked them for inviting him as Guest of Honour.

He mused over the cultural and historical richness of the two countries' relationship: "Our relations transcend diplomatic chronology    older than history and as profound as the Indian Ocean. The commemorative stamp picturing our traditional boats signifies that we are not merely neighbours but partners in a journey."

Emphasizing India's unwavering support to the Maldives, PM Modi stated: "Whether during times of natural disaster, pandemic, or economic requirement, India has been the Maldives' First Responder    providing vital goods, supporting post-Covid recovery, and more."

He pointed out that the vision of strong economic and maritime security partnership  discussed during President Muizzu's visit to India in October 2024  is now turning into reality through tangible outcomes.

Speaking about India-funded housing and infrastructure developments, he stated, "The four thousand housing units will provide homes to families in the Maldives. Initiatives like Greater Male Connectivity Project, Hanimaadhoo Airport redevelopment, and Addu road development will transform the area into a key hub for transit and economic activity.

Modi also stressed future connectivity improvements: "The upcoming ferry system will transform island travel, contracting distances in terms of travel time, not geography."

In order to further enhance developmental cooperation, India offered an extended Line of Credit of $565 million (approx.  Rs  5,000 crore) to finance infrastructure projects in areas of priority for the Maldives.

On the economic side, the two countries decided to expedite progress towards a Bilateral Investment Treaty and move ahead with talks on a Free Trade Agreement. "We are now planning to move from paperwork to prosperity," Modi declared.

With the local currency settlement system, trade will now be conducted in Indian Rupees and Maldivian Rufiyaa, making transactions easier. The inclusion of India's UPI in Maldives is likely to highly benefit the retail and tourism industries.

Defence cooperation was also in focus, with the opening of the Ministry of Defence building in Malé being greeted by Modi as a "symbol of mutual trust." He reiterated that India would continue to assist in bolstering the defence capabilities of Maldives in the quest for peace and stability in the Indian Ocean Region.

Scientific cooperation also received a boost with fresh pacts in meteorology and climate science. "Whether the weather is good or bad, the friendship between our countries will always be clear and bright," Modi said.

Sharing the common threat of climate change, the two leaders agreed to deepen renewable energy cooperation with India providing its know-how to enable Maldives to become sustainable.

In his final remarks, Prime Minister Modi extended greetings to President Muizzu and the Maldivian people once again, assuring India's unshakeable backing on their journey towards development and prosperity.