India, Maldives Strengthen Cooperation
(MENAFN) India and the Maldives have reaffirmed their commitment to enhancing their mutual relationship during Prime Minister Narendra Modi’s two-day official visit to the island nation.
As part of this diplomatic engagement, the two neighboring South Asian countries signed a total of eight agreements on Friday, aimed at deepening their collaboration across various sectors.
One of the most significant developments from the visit is the extension of a $565 million line of credit from New Delhi to the Maldives, which is currently grappling with economic challenges.
According to Modi, “This will be used for projects linked to infrastructure development in line with the priorities of the Maldivian people.”
This financial support reflects India’s continued interest in supporting the Maldives' domestic development agenda.
The two governments have also initiated discussions on establishing a free trade agreement, signaling a move toward expanded economic cooperation.
Moreover, a separate agreement was finalized to integrate India’s renowned real-time payment system, the Unified Payments Interface (UPI), with the Maldivian financial network.
This measure is expected to enhance financial interoperability and connectivity between the two nations.
This visit marks Modi’s third trip to the Maldives and is notable for being the first official visit by a foreign head of government under Maldivian President Mohamed Muizzu’s administration.
It comes after a period of strained relations following Muizzu’s victory in the 2023 presidential elections, during which he demanded the withdrawal of Indian military personnel and accused India of being a “bully.”
Since assuming office in September 2023, President Muizzu has taken steps to realign his country’s foreign policy by strengthening relations with China and seeking broader international partnerships.
This shift has been interpreted as an effort to reduce the Maldives’ traditional reliance on India and to pursue a more diversified diplomatic approach.
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