Manas Dasgupta
NEW DELHI, July 25: India on Friday extended the Line of Credit (LoC) of ₹4,850 crores to Maldives and reduced its annual debt repayment obligations on Government-funded LoCs while the two countries initiated negotiations for the launch of a Free Trade Agreement.
The Maldivian President Mohamed Muizzu, announced the beginning of negotiations for a Free Trade Agreement between the two countries during a joint press conference in Male with Prime Minister Narendra Modi.
Mr Modi, who arrived in Male amidst a warm reception at the airport on Friday for a two-day visit during which he will attend the archipelago nation’s 60th Independence Day celebrations as the chief guest, held wide-ranging talks with Maldivian President Mohamed Muizzu, focusing on consolidating cooperation in areas of trade, defence and infrastructure, marking a major turnaround in the ties after a spell of unease.
Mr Modi was received on arrival by President Mohamed Muizzu, who had invited him for the visit. The two leaders are also scheduled to hold extensive talks during the trip. The Prime Minister was welcomed with a traditional dance performance by children. to a warm welcome by President Muizzu, Foreign Minister, Defence Minister, Finance Minister and Minister of Homeland Security.
This is the first state visit of a head of government that President Muizzu is hosting in his presidency since assuming office in November 2023, according to Foreign Secretary Vikram Misri.
Mr Modi said “India and the Maldives fully understand the challenges of climate change and environmental degradation. And, we are committed to doing everything possible to boost sustainability. This evening in Malé, President Muizzu and I planted saplings, strengthening ‘Ek Ped Maa Ke Naam’ (a tree for Mother) initiative and Pledge of 5 million Tree Plantation of the Maldives.
The Prime Minister also said, PM Narendra Modi said, “Roots of India-Maldives ties are older than history, deep as the ocean… Both countries are not just neighbours but also co-travellers.” India and Maldives would work towards finalising a bilateral investment treaty: Mr Modi said after talks with President Muizzu.
He said mutual cooperation in field of defence and security was a testament to mutual trust, He also said India would always support Maldives to strengthen its defence capabilities.
“…I am pleased to announce the initiation of the Free Trade Agreement between India and Maldives. We appreciate India’s help in supporting the Maldivian economy and liquidity issues… I express my sincere appreciation to India for the provision of 72 vehicles for the Maldivian Defence Ministry…” Mr Muizzu said.
Addressing a special briefing by MEA on PM Modi’s Maldives visit, Mr Misri said “India, Maldives signed MoUs for digital transformation, other spheres.”
Earlier Mr Modi also interacted with the Indian diaspora. “The Indian diaspora plays a crucial role in furthering friendship between India and the Maldives. Happy to have interacted with members of the diaspora and I thank them for the warm welcome,” PM Modi said. Many Indian expatriates living in the Maldives expressed excitement over the Prime Minister’s visit.
“We are delighted to welcome PM Modi to Male today. I have been living here for the last 24 years. The Maldives is like a second home for me,” said one member of the Indian community. Another member added, “We are very excited to meet him. I have also been working here for the last 15 years.”