India Steps Up Economic Aid To Maldives, Signs Five Pacts, To Begin Free Trade Talks

Prime Minister Narendra Modi met with President Mohamed Muizzu in New Delhi, reinforcing India's support for the Maldives with a financial package of INR 30 billion and USD 400 million through a bilateral currency swap agreement. This assistance aims to help the Maldives overcome its ongoing financial challenges. In an effort to revive defence and security cooperation—strained after the Muizzu government ordered Indian military personnel out earlier this year—India agreed to refit and repair a Maldivian Coast Guard vessel it had previously gifted. The two countries also began negotiations on a Free Trade Agreement and signed five key agreements, including those on currency swap, judicial training, anti-corruption measures, law enforcement, and sports and youth development. Additionally, the leaders launched the Rupay card in the Maldives and marked the handover of 700 social housing units. They also inaugurated a new runway at Hanimaadhoo International Airport. Modi emphasized India’s role as the Maldives' “first responder” during crises, highlighting the longstanding, close relationship between the two nations. He reiterated India’s commitment under its “Neighbourhood First Policy” and the “SAGAR” vision, stressing the importance of mutual growth and security in the region.