Latest news with #IndiaMaldives
CNA
6 days ago
- Business
- CNA
India's Modi renews ties with Maldives
MALÉ, Maldives: Indian Prime Minister Narendra Modi wrapped up a visit to the Maldives on Saturday (Jul 26), renewing ties by offering infrastructure projects and vital financial assistance to the cash-strapped Indian Ocean nation. Regional powerhouse India had been concerned that its small, yet strategically located neighbour was drifting towards the orbit of its rival China following the 2023 election of President Mohamed Muizzu on an anti-India platform. Since coming to office, Muizzu has secured the withdrawal of a small contingent of Indian military personnel who operated search-and-rescue aircraft in the archipelago. But he has since toned down his anti-India rhetoric, and on Friday he touted the two nations' collaboration on security and trade. "India has long stood as the Maldives' closest and most trusted partner," Muizzu said in a banquet speech alongside Modi, whom he met with twice last year. "We deeply value the friendship of India and are grateful for the timely assistance your country has extended to us in moments of need," Muizzu added. Shortly after his arrival on Friday, Modi unveiled a US$565 million credit line for the Maldives, which is facing a severe foreign exchange shortage despite its thriving tourism industry. India also reduced annual repayments of an earlier credit line from US$51 million to US$29 million, and the two sides discussed a potential free-trade agreement. Muizzu said the new credit line would bolster the Maldives' security forces, and improve healthcare, housing and education. During his two-day trip, Modi also inaugurated a new defence ministry headquarters and several India-funded infrastructure projects, including roads and a 4,000-unit housing scheme. Modi's visit had set "a clear path for the future of Maldives-India relations", Muizzu wrote on X on Saturday as the Indian leader left the capital Male after 60th Independence Day celebrations. "Our relationship continues to grow, shaped by people-to-people ties and cooperation in various sectors," Modi wrote in his own post on X. "India remains committed to supporting the aspirations of the Maldivian people." Known for its luxury tourism and pristine beaches, the Maldives is also a geopolitical hotspot, with key global shipping lanes passing through its 1,192 islands, stretching across 800 kilometres of the equator.
Al Arabiya
25-07-2025
- Business
- Al Arabiya
India's Modi announces credit worth $565 million to the Maldives and launches free trade talks
Indian Prime Minister Narendra Modi on Friday announced a $565 million line of credit to the Maldives during a visit to the Indian Ocean archipelago, as the two countries launched formal talks for a free-trade agreement. Modi is visiting the Maldives, known for its upmarket tourist resorts, to mark the 60th anniversary of its independence and diplomatic relations between the two countries. The announcement came during Modi's joint media statement with Maldives President Mohamed Muizzu. The two-day visit is crucial to India's ambition to control the seas and shipping routes of the Indian Ocean in a race with its regional rival China. It also marks the further easing of diplomatic tensions between the two nations that followed the election of pro-China Muizzu in 2023. Regional powers India and China compete for influence in the archipelago nation, which is strategically located in the Indian Ocean. On Friday, Modi witnessed the exchange of agreements to cooperate in sectors such as fisheries, health, tourism, and digital development. He also formally handed dozens of heavy vehicles to the Maldives defense forces. 'India is Maldives closest neighbor. Maldives holds an important place in both India's neighborhood-first policy and ocean vision,' Modi said. 'India is also proud to be Maldives most trusted friend.' The line of credit will be used for infrastructure and development projects in line with the priorities of the people of the Maldives, he said. India will continue to support Maldives in developing its defense capabilities. 'Peace, stability, and prosperity in the Indian Ocean region is our common goal,' he added. During Muizzu's visit to India last October, India announced financial support to the cash-strapped Maldives in the form of a $100 million treasury bills rollover, and the countries signed a $400 million currency swap agreement. Tensions between India and the Maldives grew since Muizzu, who favored closer ties with China, was elected in 2023 after defeating India-friendly incumbent Ibrahim Mohamed Solih. Leading up to the election, Muizzu had promised to expel Indian soldiers deployed in the Maldives to help with humanitarian assistance. Last year, New Delhi replaced dozens of its soldiers in the Maldives with civilian experts. Measures by Modi to promote tourism in India's Lakshadweep archipelago off the southwestern coast of the Indian mainland also sparked anger from Maldivians who saw it as a move to lure Indian tourists away from their country. Indian celebrities then called for a tourism boycott to the Maldives. The dispute deepened when Muizzu visited China ahead of India in January last year, a move seen by New Delhi as a snub. On his return, Muizzu spelled out plans to rid his tiny nation of dependence on India for health facilities, medicines, and import of staples. Relations started to improve after Muizzu attended Modi's swearing-in ceremony for a third five-year term. Muizzu has toned down his anti-Indian rhetoric, and official contacts with New Delhi have intensified as concerns grew about Maldives economy. India has long been a critical provider of development assistance to the Maldives. Meanwhile, the Maldives joined China's Belt and Road Initiative in 2013 to build ports and highways and expand trade, as well as China's influence across Asia, Africa, and Europe. Modi will attend the Maldives 60th independence anniversary from being a British protectorate on Saturday.
Washington Post
25-07-2025
- Business
- Washington Post
India's Modi announces credit worth $565 million to the Maldives and launches free trade talks
COLOMBO, Sri Lanka — Indian Prime Minister Narendra Modi on Friday announced a $565-million line of credit to the Maldives during a visit to the Indian Ocean archipelago, as the two countries launched formal talks for a free-trade agreement. Modi is visiting the Maldives, known for its upmarket tourist resorts, to mark the 60th anniversary of its independence and diplomatic relations between the two countries. The announcement came during Modi's joint media statement with Maldives' President Mohamed Muizzu.
