India's friendship package for Maldives: FTA talks, ₹4,850 crore line of credit, 72 large vehicles, and more

Mint

2 days ago

Prime Minister Narendra Modi met Maldivian President Mohamed Muizzu on Friday during a two-day visit to the island nation. After receiving a ceremonial welcome at the Republic Square in Male, PM Modi was escorted to the President's Office in a cultural procession accompanied by the MNDF Drum and Trumpet Band.
The Maldives National Defence Force on Friday said they presented PM Modi with the traditional 'Haiykolhu', a cherished Maldivian gesture of hospitality and honor. PM Modi was also honoured with a 'Guard of Honour' by the MNDF earlier, news agency ANI reported.
Several key agreements and Memorandums of Understanding (MoUs) were signed between the two nations – from India pledging a Line of Credit to Maldives to launching negotiations on a free trade agreement between the two countries.
India on Friday singed a MoU to extend a ₹ 4,850 crore line of credit to the Maldives, continuing its long-standing tradition of supporting the developmental needs of the South Asian nation, the Ministry of External Affairs (MEA) said.
Foreign Secretary Vikram Misri, addressing a press briefing, said that this will be the first line of credit extended to the Maldives denominated in Indian rupees, replacing the earlier dollar-denominated credit.
"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," Misri said.
He added that the two sides also signed a mandatory agreement to amend the existing dollar line of credit between India and the Maldives.
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.
Muizzu said, "I am also pleased to announce the initiation of negotiations for a free trade agreement between India and the Maldives. This landmark initiative marks a significant step forward in strengthening our economic partnership."
On trade cooperation, the Foreign Secretary expressed optimism over the early conclusion of the proposed India-Maldives Free Trade Agreement (IMFTA). "I cannot point to an exact timeline... This is an FTA that we should be able to conclude rather quickly," he said.
According to an ANI report, India and the Maldives also signed agreements to enhance cooperation in multiple sectors, including fisheries and aquaculture, as well as to promote digitalisation. 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 has also agreed to recognise the Indian Pharmacopoeia (IP) -- India's official book of drug standards.
Maldivian President Mohamed Muizzu said that the two leaders discussed ways to expand the tourist sector through enhanced cooperation and connectivity, including the commencement of direct flights to further enhance connectivity.
He said, '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.'
'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,' the president said, adding, 'I thank the Government of India for its role as the Maldives principal partner in the health sector. 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,' Muizzu further said.