- विज्ञापन -
New Delhi: India and Maldives are currently “in discussions” to negotiate a Free Trade Agreement as well as an investment treaty to bolster the economic ties between the two nations, coupled with new areas of collaboration such as renewable energy and fisheries, Foreign Secretary Vikram Misri stated on Tuesday.
Addressing a press briefing ahead of Prime Minister Narendra Modi’s visit to the Maldives, Misri elaborated on the burgeoning economic relationship between the two countries, noting that India was one of the biggest trade partners of the Maldives, with bilateral trade reaching nearly USD 500 million, with Indian investments already in Maldivian sectors like tourism.
“On the economic front, India is one of the largest trading partners of the Maldives. The bilateral trade is nearly USD 500 million, and Indian investors remain part of sectors such as tourism in the Maldives and other economic activities. On the economic front, one recent development which I would like to share with you is that both countries are in discussions to negotiate a free trade agreement and an investment treaty as well, and new areas of cooperation, including renewable energy, fisheries, etc., are also being worked on,” Misri stated.
Beyond trade, Misri highlighted India’s role as a traditional development partner for the Maldives, executing projects through concessional lines of credit, grants, and buyer’s credit facilities.
He emphasised that the flagship Greater Male Connectivity Project, which connects four islands of the Maldives, is poised to transform the region’s infrastructure, while mentioning other initiatives include roads, airports, fisheries processing units, and social housing projects tailored to the Maldives’ priorities.
“One of the largest areas of bilateral cooperation is the development partnership between the two countries. India has been a traditional development partner of the Maldives, executing various initiatives through a mix of lines of credit at concessional rates, grants, and buyer’s credit facilities, and also conducting capacity-building programmes in a number of areas,” the Foreign Secretary said.
“The flagship project that is underway currently is the Greater Male Connectivity Project, which has the potential to be an infrastructure game changer in the Greater Male region, connecting four islands of the Maldives. There are also projects underway in the area of roads, airports, fisheries processing units and others. We are also alleviating the pressure by helping with social housing as per the needs and priorities of the Maldives,” he added.
Misri also noted India’s financial support, including a USD 400 million and Rs 30 billion twin currency swap arrangement during Maldives President Mohamed Muizzu’s visit last year, alongside the State Bank of India’s continued subscription to Maldivian treasury bills.
“We’ve extended a considerable amount of emergency financial assistance to the Government of Maldives, including through instruments such as the twin currency swap arrangements that were done when President Muizzu was also here for USD 400 million as well as Rs 30 billion. In addition, the State Bank of India has continued to resubscribe to Maldives’s treasury bills,” the Foreign Secretary said.
The partnership between the two nations also extends to capacity-building, with the Maldives being a major beneficiary of Indian scholarships and training programmes.
In defence and security, India supports the Maldives through training programmes, naval exercises, and assets for maritime domain awareness, including ships for Exclusive Economic Zone (EEZ) surveillance.
“India continues to assist Maldives in building its capacity to train Maldives defence personnel, and a lot of this is done through regular training programmes and naval exercises between the two countries. We’ve been helping Maldives enhance its capacity for EEZ surveillance and maritime domain awareness through the provision of ships and assets. The two countries are also cooperating under the gamut of the Colombo security conclave,” he noted.
Misri further underscored the multifaceted India-Maldives relationship, stating, “The relationship with the Maldives is comprehensive and multifaceted. It’s been paid attention to by leadership at the highest levels, and we believe that this visit by the Prime Minister will contribute further to consolidating these strong ties and contribute to peace, prosperity, and security in the Indian Ocean region.”
According to the Ministry of External Affairs (MEA), the Maldives has been a very close and important partner in India’s neighbourhood as part of New Delhi’s neighbourhood-first policy as well as its MAHASAGAR Vision.
Notably, ties between New Delhi and Male were strained after Maldivian officials made derogatory remarks about Prime Minister Modi in early January last year.
However, during the visit of Maldivian Foreign Minister Moosa Zameer in April 2024, Zameer distanced his government from the derogatory remarks made by these officials, stating that it was not the government’s stance and that “proper action” had been taken to ensure it was not repeated.
PM Modi will embark on his two-nation tour of the UK and the Maldives from July 23 to July 26, the MEA had said on Sunday.
He will be visiting the Maldives on July 25 on a state visit at the invitation of President Mohamed Muizzu. He has been invited as the ‘Guest of Honour’ for the 60th Anniversary celebrations of the Independence of Maldives on July 26.
Notably, the visit by PM Modi comes at a historic juncture as New Delhi and Male are marking their 60th anniversary of the establishment of diplomatic ties.
This will be the Prime Minister’s third visit to the Maldives and the first visit by a Head of State or Government to the Maldives during the Presidency of Mohamed Muizzu.
