Prime Minister Narendra Modi and President of Maldives Dr Mohamed Muizzu met on Monday and comprehensively reviewed the entire gamut of bilateral relations, while agreeing to transform the bilateral relationship in to a Comprehensive Economic and Maritime Security Partnership.

Addressing the press after his talks with Dr Muizzu, the Prime Minister said India is Maldives’ closest neighbour and a close friend. “Maldives has an important place in both our “Neighbourhood First” policy and “SAGAR” Vision. India has always played the role of a first responder for Maldives,” Mr Modi said.

“Whether it is fulfilling the need of essential commodities for the people of Maldives, making drinking water available during natural disasters, or providing vaccines during Covid, India has always fulfilled its responsibility as a neighbour,” he said.

President of Maldives thanked India for its timely emergency financial assistance, including by way of rolling over T-bills subscribed by SBI amounting to USD 100 million in May and September 2024, for a further period of one year, giving much needed financial cushion to Maldives in addressing its urgent financing needs.

Dr Muizzu expressed his appreciation for the Indian Government’s decision to extend support in the form of USD 400 million and INR 30 billion as a bilateral currency swap agreement, which had proved instrumental in tackling the financial challenges faced by the Maldives. The leaders agreed to implement further measures to support Maldives in addressing its financial challenges.

The leaders acknowledged that it was an opportune time for both sides to chart a new framework for cooperation with an aim to comprehensively transform the bilateral relationship to a Comprehensive Economic and Maritime Security Partnership, which is people-centric, future-oriented and will act as an anchor of stability in the Indian Ocean Region.

The two countries also decided to constitute a new High-Level Core Group to oversee the progress in the implementation of the vision for the Comprehensive Economic and Maritime Security Partnership. In this context, they decided to expand exchanges at leadership and Ministerial levels and to include exchanges of Parliamentarians and local government representatives.

Referring to India’s assistance in infrastructure development in Maldives, Mr Modi said “Today, we have inaugurated the redeveloped Hanimaadhoo airport. Now, the Greater Male Connectivity Project will also be expedited. Support will also be given in the development of a new commercial port in Thilafushi. Today, more than 700 social housing units have been handed over.”

The two countries also decided to initiate discussions on a Bilateral Free Trade Agreement focusing on trade in goods and services and to operationalize the settlement of trade transactions between India and Maldives in local currencies, with an aim to deepen trade linkages and to reduce dependency on foreign currencies.

The PM said “We have also focused on digital connectivity. Some time ago, RuPay card has been launched in Maldives. In the coming time, work will be done to connect India and Maldives with UPI as well. We have also talked about opening a new Indian Consulate in “Addu” and a new Consulate of Maldives in Bengaluru.”

On Defence & Security Cooperation, the two countries recognized they share common challenges in the Indian Ocean Region which have multi-dimensional implications for the security and development of both countries. As natural partners, they resolved to work together to advance the maritime and security cooperation for the benefit of their people, as well as, for the larger Indian Ocean Region. Maldives, with its vast Exclusive Economic Zone, is exposed to traditional and non-traditional maritime challenges including piracy, IUU fishing, drug smuggling, and terrorism.

It was agreed that India, as a trusted and dependable partner, will work closely with Maldives in sharing expertise, augmenting capabilities and undertake joint cooperative measures, as per needs and requirements of Maldives. Besides, they also agreed that the ongoing Maldives National Defence Force (MNDF) ‘Ekatha’ harbour project at Uthuru Thila Falhu (UTF) with India’s assistance, will significantly contribute towards enhancing MNDF’s operational capabilities, and agreed to extend full support for its timely completion.

India also agreed to support Maldives with provisioning of defence platforms and assets to augment capabilities of MNDF as well as that of the Government of Maldives in advancing its maritime and security requirements in line with its national priorities.