India-Maldives Ink Currency Swap Pact During Muizzu's Build-Up Ties Visit To New Delhi

New Delhi: Seeking to strengthen bilateral ties, India and the Maldives on Monday inked a currency swap pact and agreed to extend development cooperation to build ports, road networks, schools and housing projects in the archipelago nation grappling with a financial crisis.

Prime Minister Narendra Modi and visiting Maldivian President Mohamed Muizzu also launched the Rupay card in the Maldives, inaugurated the new runway at the Hanimadhoo International airport and agreed to further strengthen bilateral relations that had hit a rocky patch last year.

Muizzu, who is on a five-day state visit, held talks with Prime Minister Modi at the Hyderabad House here.

The Maldivian president is known to have a soft corner for China and had chosen Turkiye for his first overseas visit after being elected to the top post in November last year.

The two sides also agreed on 'A Vision for Comprehensive Economic and Maritime Security Partnership', a document that encapsulates the various aspects of the cooperation.

After the talks, India also handed over 700 social housing units in Hulhumale that were built under the EXIM Bank's buyer's credit facilities.

"A little while back, we launched the RuPay card in Maldives. In the coming times, we will work towards linking India and Maldives with UPI," Modi said.

The prime minister also announced a USD 400 million support to the island nation and the two sides inked a currency swap agreement to the tune of Rs 3,000 crore -- moves that would be instrumental in tackling its ongoing financial challenges.

The two leaders acknowledged that it was an opportune time for both sides to chart a new framework for cooperation to transform the bilateral relationship into a Comprehensive Economic and Maritime Security Partnership, which is people-centric, future-oriented and will act as an anchor of stability in the Indian Ocean Region.

"Today, we have inaugurated the redeveloped Hanimaadhoo Airport. Now, the Greater Male Connectivity Project will also be expedited. We will also support the development of a new commercial port in Thilafushi," Modi told reporters here with Muizzu by his side.

The two sides also agreed to collaborate in the development of a commercial port at Thilafushi island with enhanced cargo handling capacity to de-congest the Male port.

The two leaders agreed to explore collaboration for the development of transhipment facilities and bunkering services contributing towards the Maldives Economic Gateway project at the Ihavandhippolhu and Gaadhoo islands of the archipelago nation.

They also agreed to jointly work in harnessing the full potential of Hanimaadhoo and Gan airports which are being developed with Indian assistance as well as other airports of Maldives, and in establishing an 'Agriculture Economic Zone', tourism investments in Haa Dhaalu atoll and fish processing and canning facility at Haa Alifu atoll with Indian assistance.

Modi said India and Maldives have decided to initiate discussion on the Free Trade Agreement to further strengthen economic ties.

The prime minister described Maldives as a "close friend" who had an important position in India's neighbourhood policy and SAGAR vision.

"India has always fulfilled the responsibilities of a neighbour. Today, we have taken up the vision of a comprehensive economic and maritime security partnership to give our mutual cooperation a strategic direction," Modi said Earlier, Muizzu was accorded a ceremonial welcome at the Rashtrapati Bhawan by President Droupadi Murmu . Prime Minister Modi was also present on the occasion.

Muizzu was given a tri-services guard of honour before he drove down to Rajghat to offer his respects at the memorial of Mahatma Gandhi.

The ties between India and the Maldives came under severe strain since Muizzu, known for his pro-China leanings, took charge of the top office in November.

Muizzu won the presidential election last year on an 'India out' campaign and asked New Delhi to withdraw its military personnel posted in the archipelago nation by May this year.

The bilateral ties also hit a rocky patch when Maldivian ministers were critical of Modi. However, Muizzu has since toned down his anti-India stance and even sacked ministers who were critical of the Indian prime minister.

As the Maldives was grappling with a serious economic downturn, India has decided to extend vital budgetary support to the Maldives government with the rollover of a USD 50 million Treasury Bill for another year.