As the two nations continue to rebuild their ties, Modi accepted Muizzu’s invitation to visit the Maldives in 2025 to mark the 60th anniversary of diplomatic relations
In a significant shift in the Maldives’ foreign policy, President Muizzu, who once led an “India Out” campaign, acknowledged India’s critical role in his country’s socioeconomic and infrastructure development. Muizzu emphasized that India has consistently supported the Maldives during challenging times, and the relationship is now poised for deeper cooperation. “The Maldives will remain a true friend, committed to our shared vision of peace and development in our countries and our region,” he said.
The Maldives and India have signed a currency swap agreement, which President Muizzu described as “instrumental” in addressing the Maldives’ foreign exchange challenges. The arrangement will provide financing support of $400 million from the Reserve Bank of India (RBI) and ₹30 billion under the INR swap window, valid until June 2027. This initiative aims to boost economic resilience and stability, with both sides remaining engaged in further economic measures.
This meeting marks a turning point in the relationship between New Delhi and Male, following a period of tension when Muizzu demanded the withdrawal of Indian military personnel from the Maldives. Since then, India has replaced military staff with civilian experts and continued development projects funded by Indian aid, which helped smooth over diplomatic friction.
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President Muizzu reiterated the importance of the proposed free trade agreement, which he believes will boost Indian investments in tourism and other development sectors
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He underscored the significance of a stable, prosperous Maldives for peace in the Indian Ocean, noting that India, due to its geographical proximity, is an essential maritime security partner
Several new initiatives have been launched to enhance bilateral cooperation. Notably, India’s RuPay Card was introduced in the Maldives, aimed at boosting tourism and economic exchanges. Additionally, both leaders inaugurated a new runway at Hanimaadhoo International Airport, built with an Indian line of credit worth $132 million. To address housing shortages, India handed over 700 of 4,000 housing units currently being developed with Indian assistance.
Security and defense cooperation also received a boost. India will support the Maldives in tackling maritime challenges such as piracy, drug trafficking, and terrorism, given the archipelago’s vast exclusive economic zone. The Maldives National Defence Force (MNDF) will benefit from enhanced operational capabilities, thanks to India’s support in providing defense platforms, radar systems, and surveillance equipment. India also agreed to repair and refit a naval patrol vessel for the Maldivian Coast Guard.
Beyond defense, cooperation in other areas was strengthened. The two countries signed agreements to enhance collaboration in policing, anti-corruption efforts, disaster response, and training for judicial officers. In line with their vision for comprehensive partnership, India will continue to play a key role in hydrographic matters and disaster risk mitigation.
Highlighting India’s commitment, Prime Minister Modi stated, “India has always acted as the first responder for the Maldives, whether it be supplying essential commodities or delivering vaccines during the pandemic.” Modi also welcomed the proposal to establish consulates in Addu and Bengaluru, aimed at strengthening people-to-people ties.
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