Male: In a big boost to bilateral ties between the two nations, India extended a Rs 4,850 crore line of credit to the Maldives on Friday. This is in line with India’s long-standing tradition of supporting the developmental needs of the South Asian nation, the Ministry of External Affairs (MEA) said.
This will be the first line of credit extended to the Maldives denominated in Indian rupees, replacing the earlier dollar-denominated credit, Indian foreign secretary Vikram Misri said in a press briefing.
“We have signed an MoU related to the extension of a fresh line of credit, of ₹4,850 crore to the Maldives. This is the first Line of Credit extended to the Maldives that is denominated in Indian rupees. The Line of Credit represents a continuation of the tradition of assistance to the development needs of the Maldives, and we expect that several infrastructure projects will be carried out as a result of this Line of Credit agreement, benefiting the lives of citizens here in the Maldives,” he said.
Misri also said that the two sides signed a mandatory agreement to amend the existing dollar line of credit between India and the Maldives.
During a joint press conference with Prime Minister Narendra Modi, Maldivian president Mohamed Muizzu announced the beginning of negotiations for a Free Trade Agreement (FTA) between the two countries.
“This landmark initiative marks a significant step forward in strengthening our economic partnership,” Muizzu said.
Misri was optimistic that the proposed India-Maldives Free Trade Agreement (IMFTA) will be concluded soon. “I cannot point to an exact timeline, but this is an FTA that we should be able to conclude rather quickly,” he said.
India and the Maldives also signed agreements to enhance cooperation in multiple sectors, including fisheries and aquaculture. There was an agreement to promote digitalisation while an MoU was signed between the Indian Institute of Tropical Meteorology (IITM), Ministry of Earth Sciences, and the Maldives Meteorological Services (MMS), Ministry of Tourism and Environment. The Maldives also agreed to recognise the Indian Pharmacopoeia (IP) — India’s official book of drug standards.
Muizzu spoke on how the two leaders discussed ways to expand the tourism sector through enhanced cooperation and connectivity, including the commencement of direct flights to further enhance connectivity.
“Our flagship greater Male connectivity project, once completed, will stand as a lasting symbol of the enduring partnership between India and Maldives. I express my sincere appreciation to India for the provision of 72 vehicles to the Maldives National Defence Force,” he said.
“The handover of the remaining 3,300 housing units from the 4,000 housing units project marks a major step forward in my government’s policy in addressing housing needs across the Maldives. I thank the Government of India for its role as the Maldives principal partner in the health sector,” Muizzu added.
“India remains a key source market for Maldivian tourism. We discussed ways to expand this vital sector through enhanced cooperation and connectivity, including the commencement of direct flights to further enhance this connectivity,” the Maldivian president further said.
