New Delhi : In a significant boost to bilateral relations, Indian Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu announced a series of economic and strategic collaborations during their recent meeting in New Delhi. India extended critical financial aid to Maldives in the form of a ₹30 billion (approximately $360 million) support package and a $400 million currency swap agreement. This aid is expected to help stabilize the Maldivian economy, which has been grappling with severe foreign exchange challenges.
President Muizzu expressed his deep gratitude to India for this timely assistance, noting that it would be pivotal in addressing his country’s financial difficulties. He described the partnership as one that would strengthen the economic bond between the two nations. The currency swap agreement, in particular, is seen as a critical step in helping Maldives manage its foreign reserves and improve liquidity.
The discussions, held at Hyderabad House in New Delhi, also saw India rolling over $100 million worth of Treasury bills, further cementing its role as a key economic partner of the Maldives. Prime Minister Modi reiterated that the development partnership between the two nations remains a cornerstone of India-Maldives relations, emphasizing India’s commitment to supporting the priorities of the Maldivian people.
In addition to the financial support, both leaders celebrated the launch of the RuPay card payment system in Maldives, which will enable smoother financial transactions between the two countries. Furthermore, they inaugurated the redeveloped runway of Hanimaadhoo International Airport, a crucial infrastructure project that will enhance connectivity to the northern atolls of the Maldives. Modi also hinted at future collaborations, including the integration of the Maldives into India’s Unified Payments Interface (UPI) network, which will further strengthen the digital and economic linkages between the two nations.
This visit marks a new chapter in India-Maldives relations, which had faced turbulence in recent years. Muizzu, who had previously advocated for a reduction in Indian influence in the Maldives, has since softened his stance and is now working closely with New Delhi to address mutual challenges in the Indian Ocean region.