India works to provide a line of credit of $565 million to the Maldives; the negotiations of the Free Trade Agreement are likely to be conducted as well
Friday evening, Prime Minister Narendra Modi had an official meeting with President Mohamed Muizzu of the Maldives. The two-day visit to the island country, which is the next stop of Modi after his landmark tour to the UK, is strategic because Muizzu had assumed power in 2023 on an India Out campaign.
Modi arrived in Male in the early hours of Friday, and he is the first foreign leader to visit President Muizzu.
It is likely that the government of India will offer the Maldives a line of credit worth US$565 million; negotiations over a Free Trade Agreement are also likely to commence.
Modi will also open the extension of an international airport on the island of Hanimadhoo, which India is contributing to funding, virtually.
He is expected to be part of events marking the 60th anniversary of the Indian Ocean state of Maldives getting independence from Britain on Saturday.
The turnaroundof India-Maldives relations
The bilateral ties between the two nations later deteriorated when Muizzu assumed power, promising to change the pledge of the Maldives to the position of Dhivehi first and then Indian, and started to improve the relations with China.
New Delhi, however, has regained its clout since it helped to save the Maldives economy of $7.5 billion, which was on the route of defaulting on its debt, as an analysis by Reuters reported.
Muizzu has travelled to India recently and has made a trip to China as well—the two countries being the biggest lenders to Male—to seek financial aid.
Indian Foreign Secretary Vikram Misri added that steady diplomacy led to the rejuvenation of India-Maldives relations before Modi went on his trip: There will always be events that will come into play and will seek to interfere with the relationship. However, I believe this is a testament to the level of attention that has gone to the relationship, and this includes attention at the top levels as well.”
According to Abdulla Shahid, a former foreign minister of Maldives, Modi’s visit meant that Muizzu “has decided to pull back and rectify the narrative.”
The Maldives is a very important partner in our neighborhood first policy, the Indian foreign secretary said in his briefing at the beginning of the week as part of its Neighborhood First policy called in its vision MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions).
