Maldives President Mohamed Muizzu’s attitude shifted dramatically during his visit to India, where he praised India as a “special friend.” In response, India extended a hand of friendship, leading to several important agreements aimed at strengthening bilateral relations.
Today, India and the Maldives signed a currency swap agreement worth $400 million, helping the island nation address its foreign exchange reserve issues. Prime Minister Narendra Modi and President Muizzu inaugurated the new runway at Hanimaadhoo International Airport and launched the RuPay card in the Maldives.
India also delivered 700 social housing units built under Exim Bank’s buyer credit facilities to the Maldives. PM Modi announced that multiple agreements signed today will expedite the Greater Male Connectivity Project and support the development of a new commercial port in Thilafushi.
Modi emphasized the decision to initiate discussions on a free trade agreement (FTA) to further enhance economic ties, describing the Maldives as a “close friend” with a vital role in India’s neighborhood policy and Sagar Vision. He reaffirmed India’s commitment to fulfilling its responsibilities as a neighbor, stating that both countries have adopted a vision for a comprehensive economic and maritime security partnership to strategically guide their cooperation.
It’s important to note that tensions between India and the Maldives escalated last year. Muizzu, perceived as pro-China, won the presidential election under the “India Out” campaign and called for the withdrawal of Indian military personnel by May. Relations soured further due to controversial statements from Maldives ministers about PM Modi. However, Muizzu has since softened his anti-India stance and dismissed those ministers.