India’s Generosity Towards Maldives, Key Agreements Following a Shift in Muizzu’s Stance.

During the visit of Maldivian President Mohamed Muizzu to India, bilateral relations between the two countries took a significant turn. Muizzu, who was previously seen as pro-China and came into power through the “India Out” campaign, now appears to be viewing India as an important ally and friend. This visit marks a fresh start following a period of tension between India and the Maldives, with several key agreements being signed. To stabilize the Maldivian foreign exchange reserves, India and the Maldives signed a currency swap agreement worth 400 million USD. This agreement will help the Maldives recover from its foreign currency crisis. Additionally, Prime Minister Narendra Modi and President Muizzu launched the RuPay card in the Maldives, which will further strengthen economic and financial ties between the two nations. This step will make it easier for Maldivian citizens to conduct transactions in India.

During discussions between Prime Minister Modi and President Muizzu, several infrastructure projects were highlighted. They agreed to expedite the Greater Malé Connectivity Project, which plays a vital role in the development of the Maldives. India also reaffirmed its support for the development of a new commercial port in Thilafushi, which will boost the trade capacity of the Maldives. India has also handed over 700 social housing units to the Maldives, built under Exim Bank’s buyer’s credit facilities. This will contribute to improving living standards in the Maldives and strengthen ties between the two nations. Prime Minister Modi emphasized that this partnership symbolizes the deep friendship between India and the Maldives and will give new direction to their bilateral cooperation.

To further strengthen economic ties, India and the Maldives have decided to initiate discussions on a Free Trade Agreement (FTA). This agreement is expected to bolster trade relations and enhance India’s role in the economic growth of the Maldives. Prime Minister Modi called the Maldives a close friend within India’s neighborhood policy and the SAGAR (Security and Growth for All in the Region) vision. Last year, relations between India and the Maldives had soured when President Muizzu won the election on the “India Out” campaign, demanding the withdrawal of Indian military personnel. Controversial statements from Maldivian ministers further strained the ties. However, over time, Muizzu softened his anti-India stance and took steps to increase cooperation with India. Dismissing the ministers responsible for inflammatory statements and recognizing India as a strategic partner are part of Muizzu’s new approach.