In a landmark joint press conference held at Hyderabad House in New Delhi, President Dr. Mohamed Muizzu and Indian Prime Minister Narendra Modi unveiled a new vision for their nations’ bilateral relations. The leaders announced the “Comprehensive Economic and Maritime Security Partnership,” signalling a deepening of collaboration across a range of sectors, from economic resilience to maritime security.
Prime Minister Modi extended a warm welcome to President Muizzu and his delegation, emphasising the historical ties between India and the Maldives. He highlighted the Maldives’ significance in India’s “Neighbourhood First” policy and “SAGAR” vision, underlining India’s role as a first responder to Maldivian crises, including providing essentials during natural disasters and vaccine support during the COVID-19 pandemic.
Economic Support and Infrastructure Development
Central to the discussions was India’s continued financial support to strengthen the Maldivian economy. Prime Minister Modi announced the conclusion of a USD 400 million currency swap agreement and a further INR 30 billion in budgetary support. Additionally, the State Bank of India (SBI) rolled over USD 100 million worth of Maldivian Treasury Bills. These measures are seen as vital to addressing the Maldives’ foreign exchange challenges and strengthening its economic resilience.
Infrastructure development was another key focus. The two leaders virtually inaugurated the redeveloped Hanimaadhoo International Airport, a critical project aimed at enhancing connectivity and driving economic growth. Prime Minister Modi assured that work on the Greater Malé Connectivity Project would be expedited, while cooperation would continue on the development of a new commercial port at Thilafushi.
India also announced the completion of more than 700 social housing units in Hulhumale’, built in collaboration with the Maldivian government, to address housing needs. Water and sewerage projects on 28 Maldivian islands were similarly highlighted, with work on six more islands nearing completion, benefiting around 30,000 residents.
Digital Connectivity and Trade
Both nations placed a strong emphasis on advancing digital connectivity. The RuPay card system, launched earlier in the Maldives, is set to revolutionise financial accessibility between the two countries. Looking forward, both leaders committed to linking India and the Maldives through the Unified Payments Interface (UPI), further facilitating ease of transactions.
Discussions also included the initiation of a Free Trade Agreement (FTA) between India and the Maldives, a move that is expected to enhance trade relations and drive economic growth. Local currency trade settlements are also being explored as part of broader financial cooperation.
Maritime Security and Defence Cooperation
Maritime security remains a priority for both nations, with President Muizzu recognising India’s critical role in the Indian Ocean region. The two leaders reaffirmed their commitment to strengthening defence ties, including training and capacity-building for the Maldives National Defence Force (MNDF). Work on the Ekta Harbour Project, aimed at enhancing maritime infrastructure, is progressing swiftly.
India also extended an invitation to the Maldives to join the Colombo Security Conclave as a founding member, further boosting regional security cooperation. Prime Minister Modi highlighted India’s willingness to share expertise in hydrography and disaster response.
Climate Change and Sustainable Development
Acknowledging the shared threat posed by climate change, both leaders committed to continued cooperation in promoting sustainable development. Prime Minister Modi offered India’s expertise in solar energy and energy efficiency to assist the Maldives in its climate initiatives, reinforcing their collaboration on multilateral forums.
Looking Ahead
As both countries approach the 60th anniversary of diplomatic relations in 2025, President Muizzu extended an invitation to Prime Minister Modi for a state visit to the Maldives to commemorate the milestone. Both leaders expressed their confidence that this comprehensive partnership would strengthen people-to-people connections and drive economic, political, and security cooperation.
The joint statement serves as a testament to the enduring friendship between India and the Maldives, as both nations continue to work together towards a future of shared prosperity and peace.
