The year was 2023 when Mohamed Muizzu was elected as the President of Maldives on an ‘India Out’ campaign. Following this, there was a slight sourness in India-Maldives relations. However, both the countries now seem to be straightening out any such tensions, working towards cordial relations.
Remember how Prime Minister Narendra Modi’s pictures from Lakshadweep in January 2024 were all over the internet for months. This was aimed at embracing our own coastal beauty, rather than flying off to Maldives following the latter’s ‘India Out’ push.
Cut to 2025, Modi and Muizzu have joined hands for Rs 4,850 crore Line of Credit to Maldives!
What happened during PM Modi’s visit to Maldives?
PM two-day trip to the island nation was the first by a foreign leader after President Muizzu’s victory. Both the leaders on Friday (July 25) announced the commencement of negotiations for the launch of a Free Trade Agreement (IMFTA). Notably, this comes just after PM Modi signed the landmark India-UK FTA.
Muizzu and Modi engaged in wide-ranging talks, which were aimed at consolidation of cooperation in areas of trade, defence and infrastructure. With this, India also extended the Line of Credit (LoC) of Rs 4,850 crores to Maldives, which cuts down Maldives’ annual debt repayment obligations on Gol-funded LoCs by 40%.
PM Modi said that Maldives is at the core of our ‘Neighbourhood First’ and Mahasagar Vision. Our discussion covered several sectors, notably commercial and cultural linkages. We both agree that the India-Maldives friendship will always be bright and clear.
Why Modi’s Maldives visit is important?
Firstly, the PM’s visit to the archipelagic country comes immediately after his landmark visit to the UK, and is of strategic importance in view of the 2023 ‘India Out’ campaign, on the basis of which Muizzu had come to power. Modi received a grand welcome with a 21-gun salute on his first day of Maldives visit.
Maldives seemingly left no efforts at making grand gestures to appease PM Modi, to straighten out the diplomatic ties between the two countries. Muizzu’s appointment on the back of an ‘India Out’ campaign in late 2023, Indians started boycotting Maldives, otherwise a popular travel destination.
How India-Maldives relations progressed post Muizzu becoming the President?
After a seemingly tough time, there was turnaround in India-Maldives relations as both the countries decided to make a reconciliation in 2024. In June 2024, Muizzu attended Modi’s oath ceremony, following which in August, Foreign minister S Jaishankar made an official visit to Maldivian capital Male.
In October, Muizzu came to India on his first bilateral visit and was welcomed ceremonially by President Droupadi Murmu and PM Modi. Later, the countries inaugurated a new runway in Maldives’ Hanimadhoo International Airport, built under an airport redevelopment project assisted by India.
What are the 8 deals signed between India and Maldives?
Line of Credit – India has agreed for a Rs 4850 crore credit line to Maldives.
Annual Debt Repayment – There has been an amendatory agreement on reducing annual debt obligations of Maldives on GoI-funding LoCs.
India-Maldives FTA – The countries will launch IMFTA and the terms have been finalised.
Fisheries, Agriculture – MoU have been signed on cooperation in these fields.
IITM-MMS MoU – Deal signed between Indian Institute of Tropical Meteorology, Ministry of Earth Sciences and the Maldives Meteorological Services, Ministry of Tourism and Environment.
Digital Solutions – MoU on cooperation in field of sharing digital solutions.
India and Maldives have signed a MoU on recognition of Indian Pharmacopoeia.
UPI in Maldives – Network-to-network agreement for the use of UPI in Maldives.