New Delhi, Male ties take a new turn

Modi and Muizzu virtually inaugurate runway at Maldives' Hanimadhoo airport, and monitor a RuPay transaction via weblink

India has always been the first responder for Maldives, Prime Minister Narendra Modi said, underlining Delhi’s commitment to bilateral ties, as he met Maldivian President Mohamed Muizzu on Monday.

Both the leaders announced enhancing bilateral ties to a ‘Comprehensive Economic and Maritime Security Partnership,’ which will act as an anchor providing stability in the Indian Ocean Region.

Muizzu, who arrived in India on Sunday for a five-day state visit at the invitation of President Droupadi Murmu, was accorded a ceremonial reception at Rashtrapati Bhavan on Monday morning.

Later in the day, Muizzu, who was welcomed by Modi at Hyderabad House, acknowledged India’s ongoing role as the first responder during its crises and also recalled Indian assistance during the 2014 water crisis in Malé and the covid pandemic.

Both the leaders announced that they will work positively towards establishing a consulate of Maldives in Bengaluru and a consulate of India in Addu city for expansion of trade and economic cooperation and greater people-to-people contacts.

Muizzu expressed gratitude towards India for its timely financial help, which included rolling over Treasury bills worth $100 million that were subscribed by the State Bank of India (SBI) in May and September 2024. This rollover extends the financial support for another year, providing the African country with a crucial financial cushion to address urgent needs.

Both leaders announced the launch of RuPay card in the Maldives to boost financial cooperation and convenience for tourists and residents. The inauguration of a new runaway in the Maldives was also among the announcements made.

Muizzu expressed his appreciation for the Indian government for extending support in the form of $400 million and ?30 billion as a bilateral currency swap agreement to help Maldives tackle financial challenges. Both the leaders also agreed to implement further measures to support Maldives in addressing its financial challenges.

New Delhi agreed to extend full support for the timely completion of Male’s flagship project, ‘Greater Malé Connectivity Project’ (GMCP), and also to undertake a feasibility study to connect the islands of Thilafushi and Giraavaru as an extension.

It was agreed that New Delhi will collaborate in the development of a state-of-the-art commercial port at Thilafushi island to de-congest the Malé port and provide enhanced cargo handling capacity at Thilafushi.

Both the leaders agreed to explore collaboration for development of transshipment facilities and bunkering services contributing towards Maldives Economic Gateway project at Ihavandhippolhu and Gaadhoo islands of Maldives and to extend support in harnessing the full potential of Hanimaadhoo and Gan airports that are being developed with Indian assistance as well as other airports of Maldives.

During his tour, Muizzu will also visit Mumbai and Bengaluru to attend business events.

This is Muizzu’s maiden bilateral visit. He had earlier visited India in June, to attend the swearing-in of Modi and his council of ministers.

Maldives is India’s key maritime neighbor in the Indian Ocean Region and is central to Modi’s Security and Growth for All in the Region (‘SAGAR’) vision and India’s ‘Neighbourhood First Policy’.

Muizzu’s visit to India comes two months after external affairs minister S. Jaishankar’s visit to that country reflects the importance India attaches to its ties with the country.

During his visit to Male in August, Jaishankar had handed over a $110 million India-funded water and sewerage project in 28 islands of the Maldives that is expected to support 28,000 citizens.

These projects include water supply facilities on 22 islands, sewerage facilities on two islands, and combined water supply and sewerage facilities on four islands.

The projects were carried out under a line of credit facility of $800 million, signed with India’s EXIM Bank in 2019.

Jaishankar had also inaugurated other projects, including developing Addu City through various infrastructure projects.

Muizzu’s latest visit and comments also reflect a growing bonhomie between the nations after a diplomatic tiff last year over three Maldivian ministers’ comments on Modi after a viral post on social media about Lakshadweep as an alternate tourist destination to the Maldives.

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