New Delhi: After talks between Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu here on Monday, the two nations announced a “Comprehensive Economic and Maritime Security Partnership” and also signed five pacts, including a currency swap agreement of $400 million along with Rs 3,000 crores that President Muizzu said would be “instrumental in addressing the foreign exchange issues” facing his country. He also described India as a “key partner” in his nation’s socio-economic and infrastructure development, adding that India has always “stood with the Maldives in times of need”. He also termed India as an “important partner” of his country in the “maritime security domain”, as India will support the Maldives in “provisioning of defence platforms and assets”, including “radar systems and other equipment” for surveillance capabilities and monitoring by the Maldivian defence forces. India is also assisting the “Ekatha” harbour project that will boost the capabilities of the Maldivian forces. India will also “refit the Maldivian Coast Guard ship Huravee on a gratis basis”.
Describing India as one of his country’s largest tourism markets, President Muizzu said he “hoped to welcome more Indian tourists”. The Maldives saw a sharp drop in Indian tourists earlier this year after three erstwhile Maldivian ministers had made derogatory remarks against Mr Modi.
In his remarks, Prime Minister Narendra Modi said India was a “first responder” for the Maldives, including on supply of essential commodities, drinking water or vaccines, adding that India has always “fulfilled its commitment” to the Maldives. President Muizzu thanked Mr Modi for India's financial assistance previously, including recent budgetary support to the Maldives in the form of rollover of treasury bills of $100 million in May and September this year. Mr Muizzu also invited Mr Modi to pay a state visit to the Maldives.
The other pacts inked included one for training of Maldivian police forces, one for training of Maldivian judges, a pact to combat corruption and another on sports and youth cooperation. The two nations also agreed to begin talks on a Free Trade Agreement (FTA), even as the Indian RuPay card was launched in the Maldives. Trade settlement in local currencies is also on the table. The two nations discussed opening of an Indian consulate in Addu and a Maldivian one in Bengaluru. Cooperation in the crucial area of hydrography was also announced.
The two leaders presided over the handing over by India of 700 social housing units in the Maldives built under Indian credit facilities. Work on 4,000 housing units built with Indian assistance is also on. Another announcement was the inauguration of a new runway of Hanimaadhoo International Airport that was carried out with Indian assistance.
The visit of Mr Muizzu is being seen as a big diplomatic win for India in the face of adversity, considering that relations between the two nations had nose-dived in the months after his assuming office last year. In fact, President Muizzu had earlier been an India-baiter and visited Beijing earlier this year in what was seen as a snub to India. President Muizzu, who was earlier associated with the “India Out” campaign as an erstwhile Opposition leader, has changed his stance drastically, given the plummeting economic fortunes of his tiny nation. The thaw in ties was noticeable when President Muizzu attended the swearing-in ceremony of Mr Modi in June this year in New Delhi, making the current trip his second visit this year.
On continuing Indian development assistance, Mr Modi said work on the Greater (Maldivian capital) Male Connectivity Project would be expedited. He further said in 28 Maldivian islands, the water and sewage projects have been completed while in six other islands, the work would be completed in due course. Mr Modi also mentioned that the two countries would cooperate in oceanography and on a “blue economy”.
