In a significant step toward mending bilateral ties, India has extended a Line of Credit worth Rs 4,850 crore ($565 million) to the Maldives and launched negotiations for a free trade agreement during Prime Minister Narendra Modi’s visit to Male.
After wide-ranging talks with Maldivian President Mohamed Muizzu, Modi also announced efforts to finalise a bilateral investment treaty, reaffirming India’s support for strengthening Maldives’ defence capabilities.
“India is proud to be the most trusted friend of the Maldives,” Modi said, underlining the island nation’s importance in India’s ‘Neighbourhood First’ policy and MAHASAGAR vision.
PTI had reported that Modi’s visit, marked by a warm reception from President Muizzu at Velena International Airport and a ceremonial welcome at Republic Square, comes after months of tension following Muizzu’s rise to power on an ‘India Out’ campaign.
One of his first moves as president was demanding the withdrawal of Indian military personnellater replaced by civilians.
Despite the rocky start, New Delhi’s sustained diplomatic efforts and economic assistance appear to have reset the relationship.
“We’ve continued to work at it, and I think the result is there for you to see,” Foreign Secretary Vikram Misri noted, reflecting a renewed momentum in India-Maldives ties
