Prime Minister Narendra Modi’s recently concluded two-day state visit to the Maldives has been hailed as an “extremely productive” and “defining” moment, signifying a significant turnaround in bilateral relations and reinforcing India’s commitment to its ‘Neighbourhood First’ policy. Modi, who was the Guest of Honour for the Maldives’ 60th Independence Day celebrations, underscored India’s role as a trusted friend and “First Responder” in the Indian Ocean region.
The visit, the first by any Head of State or Government during President Dr. Mohamed Muizzu’s tenure, successfully navigated a period of strained relations characterized by the “India Out” campaign. Both leaders reaffirmed their shared goals of peace, stability, and prosperity, laying the groundwork for a comprehensive economic and maritime security partnership.
A cornerstone of the visit was the announcement of a substantial INR 4,850 crore (approximately $565 million) Line of Credit to the Maldives for infrastructure development, notably extended for the first time in Indian Rupee. This financial commitment is set to bolster critical sectors like healthcare, housing, and education, and enhance the Maldives’ security capabilities. In a significant move to alleviate the Maldives’ debt burden, an amendatory agreement was signed to reduce annual debt repayment obligations from $51 million to $29 million, marking a 40% reduction.
Beyond financial aid, the two nations initiated negotiations for an India-Maldives Free Trade Agreement (IMFTA), aiming for swift completion, and committed to finalizing a bilateral investment treaty. Several other strategic agreements were formalized across sectors including fisheries, meteorology, and digital infrastructure. India also handed over 3,300 social housing units and inaugurated a roads and drainage system project, along with six high-impact community development projects. Furthermore, India will provide 72 heavy vehicles to the Maldivian Ministry of Defence, strengthening their defence capabilities. The visit also saw the exchange of four MoUs and three agreements, and the release of a commemorative stamp marking 60 years of diplomatic relations.
Prime Minister Modi consistently emphasized India’s unwavering commitment to fostering cordial relations with neighboring countries and elevating regional cooperation to new heights. The renewed bonhomie with the Maldives serves as a powerful testament to this vision. For Sri Lanka, this visit offers valuable lessons in leveraging India’s burgeoning economic growth. By actively aligning its economic strategies and fostering deeper partnerships with India, Sri Lanka stands to benefit significantly from increased trade, investment, and collaborative development initiatives, contributing to its own stability and prosperity in the dynamic South Asian landscape. (Foreign Media)
Ankit2841@protonmail.com
Asst Professor in International Relations, National Defence University , Gujarat, India