By Anjali Sharma
WASHINGTON – Prime Minister Narendra Modi on Friday announced that India would provide a “Line of Credit” of USD 565 million (approximately Rs 5,000 crore) to Maldives and assured the island nation that both the countries will strengthen regional maritime cooperation through the Colombo Security.
PM Modi in a press statement after meeting with Maldives President Mohamed Muizzu in Male said “To give a new impetus to our development partnership, we have decided to provide a “Line of Credit” of $565 million, or approximately Rs 5,000 crore, to Maldives. It will be used for projects related to infrastructure development in line with the priorities of the people of Maldives.”
He said it would be used for projects related to infrastructure development in line with the priorities of the people of Maldives.
PM said the two nations have taken several steps to accelerate their economic partnership. “To accelerate mutual investment, we will soon work towards finalising the Bilateral Investment Treaty. Negotiations on a free trade agreement have also begun. Now our goal is – From paperwork to prosperity!,” he added.
He said that the local currency settlement system will allow direct trade in rupees and rufiyaa. The pace at which UPI is growing in Maldives will give a boost to both tourism and retail, the Prime Minister said.
Both the leaders made the joint press statement after their meeting during which they reviewed the entire spectrum of India-Maldives relations and reaffirmed their commitment to strengthen bilateral ties.
They discussed cooperation in the fields of development partnership, capacity building, health, infrastructure, digital economy, aquaculture, climate change and renewable energy.
Both leaders called for closer collaboration to enhance peace, progress and prosperity of the Indian Ocean region.
They stressed the progress in the implementation of the India-Maldives Joint Vision for a ‘Comprehensive Economic and Maritime Security Partnership’ adopted in 2024.
Modi announced that India and Maldives will strengthen regional maritime cooperation through the Colombo Security Conclave and also termed climate change a “major challenge” for both nations.
“India will continue to support Maldives in the development of its defence capabilities. Peace, stability and prosperity in the Indian Ocean region is our common goal. Together at the Colombo Security Conclave, we will strengthen regional maritime security,” he said.
“Climate change is a big challenge for both of us. We have decided to promote renewable energy. India will share its experience in this field with Maldives,” Modi said.
“Last year in October, during the President’s visit to India, we shared a vision on Comprehensive Economic and Maritime Partnership. Now, this is becoming a reality. It is a result of our relations touching new heights. Inauguration of several projects have become possible. 4000 social housing units, built with India’s assistance, will become a new beginning and a new home for several families in Maldives,” PM said.
He said the Greater Male Connectivity Project, the Addu Road Development Project, and the redeveloped Hanimaadhoo International Airport will transform this entire region into an important transit and economic hub.
“Soon, with the beginning of the ferry system, commuting between different islands will be smoother. After that, the distance between islands will be measured in terms of ferry time, and not GPS,” PM Modi said.
Modi said this year, India and Maldives are also celebrating 60 years of their diplomatic relations.
“But, the roots of our relations are older than history and as deep as the sea. The commemorative stamps released today display traditional boats of both nations. This reflects that we are not just neighbours but also co-passengers,” PM Modi said.
“India is the closest neighbour of Maldives. The Maldives holds an important place in India’s Neighbourhood First policy and its MAHASAGAR vision. India is proud to be the most trusted friend of Maldives. Be it a natural disaster or pandemic, India has always stood with them as first responders. Be it making essential commodities available or handling the economy after Covid, India has always worked together. For us, it is always friendship first,” he added.
Mr. Modi was accorded a ceremonial welcome and guard of honour at the Republic Square in Male as he began his official engagements during a two-day State Visit to the country.
