India Maldives Relation News: India and Maldives on Monday signed a currency swap agreement of $400 million to strengthen relations. They also agreed to increase cooperation for the construction of ports, road networks, schools, and housing projects. Prime Minister Narendra Modi and Maldives President Mohammad Muizzu also released the Rupay card in Maldives. Apart from this, the new runway at Hanimaadhoo International Airport was inaugurated and agreed to further strengthen bilateral relations.

It is noteworthy that last year the relations between the two countries had soured. Muizzu, who is on a five-day state visit, held talks with Prime Minister Modi at Hyderabad House here. The Maldives President is known to have a soft stance towards China and after being elected to the top post in November last year, he chose Turkey for his first foreign visit. After the talks, India also handed over 70 social housing to the Maldives. It has been constructed under the buyer's credit facility of Exim Bank (Export-Import Bank of India).

Prime Minister Modi said, 'Some time ago we introduced the Rupay card in the Maldives. In the coming time, we will work towards connecting India and Maldives with UPI (Unified Payment Interface).' The Prime Minister also announced assistance of $ 400 million to Maldives. Both sides signed a currency swap agreement worth more than Rs 3,000 crore. This step will help Maldives to deal with financial challenges.

'We will help develop a new commercial port in Thilafushi'

The two leaders acknowledged that it is an opportune time to build a new framework of cooperation to transform bilateral relations into a comprehensive economic and maritime security partnership. It is people-centric, and future-oriented and will serve as a pillar for maintaining stability in the Indian Ocean region. "Today, we inaugurated the redeveloped Hanimaadhoo airport. Now the Greater Male connectivity project will also be accelerated. We will assist in the development of a new commercial port at Thilafushi," Modi told reporters here along with Muizzu. The two leaders also agreed to explore the possibility of cooperation in the development of transshipment facilities and bunkering services contributing to the Maldives Economic Gateway project on the Ihavandhippulu and Gadhoo islands in Maldives.

Both countries also agreed on the establishment of an 'agricultural economic zone', tourism investment in Haa Dhaalu Atoll, and fish processing.

The two sides also agreed to work jointly to fully utilise the full potential of Hanimaadhoo and Gan airports which are being developed with Indian assistance. Besides, the two countries agreed on setting up of 'Agro Economic Zone', tourism investment in Haa Dhaalu Atoll, and fish processing. The Prime Minister said India and Maldives have decided to start negotiations on a Free Trade Agreement to further strengthen economic ties.

He described Maldives as a "close friend" which has an important place in India's neighborhood policy and SAGAR (Security and Growth for All in the Region) vision. Modi said, "India has always fulfilled the responsibilities of a neighboring country. Today, we have adopted a comprehensive economic and maritime security partnership approach to give strategic direction to our mutual cooperation." Earlier, President Draupadi Murmu accorded Muizzu a ceremonial welcome at Rashtrapati Bhavan. Prime Minister Modi was also present on the occasion.