Despite some diplomatic friction, particularly earlier this year, India continues to play a pivotal role in supporting the Maldives both financially and diplomatically
India has once again extended its financial support to the Maldives by rolling over $50 million in Treasury Bills (T-bills) for an additional year, following a request from the Maldivian government. The Indian High Commission in the Maldives announced this extension, facilitated by the State Bank of India (SBI), which subscribed to the T-bills issued by the Maldives’ Ministry of Finance. This marks the second time in 2024 that India has provided such assistance, the first instance being in May, reported timesofindia.indiatimes.com.
The rollover of this emergency financial assistance underscores India’s commitment to the Maldives, a key maritime neighbor and strategic partner. The Indian High Commission reaffirmed this, noting that the support aligns with India’s “Neighbourhood First” policy and its Vision SAGAR (Security and Growth for All in the Region). These initiatives highlight the priority India places on fostering regional stability and growth, particularly in the Indian Ocean.
This latest extension of financial aid not only provides immediate economic relief but also strengthens the foundation for long-term collaboration between the two nations
In addition to the financial aid, India has also extended a special export quota for essential commodities to the Maldives, further illustrating its continued backing of the Maldivian government and its people. Abdulla Shahid, the former foreign minister of the Maldives, welcomed India’s consistent support, emphasizing the close and long-standing ties between the two nations. Shahid hailed India as a “time-tested friend” and “unwavering ally,” particularly in the face of the current Maldivian government’s economic challenges and foreign policy shifts.
While relations between the two countries have faced tensions recently—especially after President Mohamed Muizzu’s demand for the withdrawal of Indian military personnel—efforts have been made to improve bilateral ties. High-level visits, such as the one by India’s External Affairs Minister S Jaishankar in August, have contributed to restoring relations. During his visit, Jaishankar signed agreements focused on capacity building and inaugurated six High Impact Community Development Projects (HICDPs), reinforcing India’s commitment to enhancing cooperation with the Maldives.
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