Maldives-India execute 8 accords including agreement on USD 565M line of credit

The governments of Maldives and India have signed eight accords including an agreement on a new USD 565 million line of credit for infrastructure development projects.

The documents were signed and exchanged during a ceremony at the President’s Office, following official bilateral talks between Maldivian President Dr. Mohamed Muizzu and Indian Prime Minister Narendra Modi as part of the latter’s ongoing state visit to the Maldives.

The eight agreements executed between both countries are as follows:

1. Negotiation framework to commence formal negotiations India-Maldives Free Trade Agreement (IMFTA)

2. Agreement on an umbrella line of credit of USD 565 million to Maldives through India's Exim Bank for Maldives’ infrastructure development

3. MoU on easing repayment obligations of existing lines of credit granted by India 

4. MoU on further cooperation in the field of fisheries and aquaculture 

5. Agreement for the supply of medicines that meet the standards established by the Indian Pharmacopoeia Commission

6. MoU on collaborating on monitoring climate and environment

7. MoU on digital cooperation

8.  Network-to-Network agreement between India’s NPCI International Payment Limited (NIPL) and Maldives Monetary Authority (MMA) on launching India’s Unified Payments Interface (UPI) system in the Maldives.

The plane carrying PM Modi, who is also set to be the guest of honor of Maldives’ 60th Independence Day celebrations, landed at the Velana International Airport (VIA) in the Maldivian capital at around 09:15am Friday.

He was received at the airport by Maldivian President Dr. Mohamed Muizzu, Foreign Minister Dr. Abdulla Khaleel, and other senior Maldivian government officials.

He was accorded a ceremonial welcome to the Maldives at the Republic’s Square on Friday afternoon where a 21-gun salute was performed by Maldives National Defence Force (MNDF) followed by a Guard of Honor.

On Saturday, PM Modi is set to take part in Maldives’ 60th Independence Day celebration.

In a post on X on Wednesday, he said he was honored to be taking part in the celebrations. He also noted that this year also marks the 60th anniversary of formal diplomatic relations between Male’ and New Delhi.

“The talks with President Muizzu will certainly add momentum to bilateral ties across diverse sectors,” he said.

Elected to office on a pledge to expel Indian troops from the Maldives, relations between Male’ and New Delhi had been strained in the early days of President Muizzu’s administration.

Things escalated further three months into office when three deputy ministers made disparaging remarks regarding India and Indian Prime Minister Modi following a social media post promoting India’s Lakshadweep as an alternative tourist destination to the Maldives.

Speaking to reporters after concluding a state visit to China the same month, President Muizzu said that Maldives wasn’t any country’s backyard and that the country cannot be bullied just because its small – remarks that were widely believed to be directed at India.

But despite the earlier turmoil, officials from both Male’ and Delhi repeatedly expressed keenness to repairing relations, and engaged in several high-level visits, including two by President Muizzu himself.

The visit by Modi, which marks his third visit to the Maldives but his first during President Muizzu’s administration, is expected to cement the ties between Male’ and New Delhi.