The governments of Maldives and India signed eight landmark agreements, including a USD 565 million line of credit for infrastructure development in the Maldives. The agreements were formalized during a ceremony at the President’s Office in Malé, following productive bilateral talks between Maldivian President Dr. Mohamed Muizzu and Indian Prime Minister Narendra Modi.
The signing took place as part of PM Modi’s state visit to the Maldives, underscoring the growing partnership between the two nations. Additionally, India gifted 72 heavy vehicles to the Maldives National Defense Force (MNDF), enhancing its operational capacity. The vehicles were handed over in a symbolic ceremony where President Muizzu received a ceremonial key from PM Modi.
Eight Agreements Signed: The Maldives and India finalized eight accords to boost cooperation in trade, infrastructure, health, technology, and defense. These agreements aim to foster economic growth and mutual support.
- USD 565 Million Credit Line: A major highlight is the USD 565 million line of credit from India’s Exim Bank to fund infrastructure projects in the Maldives, such as roads, bridges, and public facilities, to support the nation’s development goals.
- Free Trade Agreement Talks: The two countries agreed to start negotiations for an India-Maldives Free Trade Agreement (IMFTA), aiming to increase trade by reducing tariffs and barriers, benefiting businesses and consumers.
- Eased Loan Repayments: An MoU was signed to make repayment terms for existing Indian loans more flexible, helping Maldives manage its financial obligations more effectively.
- Fisheries and Aquaculture Cooperation: The agreement on fisheries and aquaculture will promote sustainable practices, improve fish production, and support the livelihoods of Maldivian fishermen.
- Medicines Supply Deal: India will supply high-quality medicines meeting the standards of the Indian Pharmacopoeia Commission, ensuring better access to healthcare in the Maldives.
- Climate and Environment Collaboration: An MoU on climate monitoring will enable joint efforts to address environmental challenges, including rising sea levels, which are critical for the low-lying Maldives.
- Digital Cooperation: The digital MoU will enhance technological collaboration, focusing on e-governance and cybersecurity to modernize Maldives’ digital infrastructure.
- UPI Launch in Maldives: A network-to-network agreement between India’s NPCI International Payment Limited (NIPL) and the Maldives Monetary Authority (MMA) will introduce India’s Unified Payments Interface (UPI), enabling faster and easier digital payments in the Maldives.
These agreements mark a new chapter in India-Maldives relations, with both nations committed to working together on trade, technology, and sustainability. The free trade agreement negotiations and the UPI rollout are expected to boost economic ties, while the infrastructure projects funded by the credit line will enhance the Maldives’ growth prospects. The defense cooperation, symbolized by the vehicle donation, further cements the strategic partnership, ensuring mutual support in regional security. This multifaceted collaboration highlights the shared vision of India and the Maldives to promote prosperity, resilience, and stability in the Indian Ocean region. As both nations move forward, these initiatives are set to create lasting benefits for their people and strengthen their bond as trusted partners.
