India provides assistance to bordering country amid attempts to reset relations
Date
10/10/2024 1:40:06 AM
(MENAFN) In a significant diplomatic effort, Indian Prime Minister Narendra Modi met with Maldivian President Mohamed Muizzu in New Delhi on Monday to enhance strategic and economic cooperation following a period of strained relations. Modi emphasized India's role as the Maldives' nearest neighbor and close friend, reaffirming that India has always acted as the “first responder” to the needs of the island nation.
During the talks, both leaders expressed their commitment to improving bilateral relations and signed several agreements aimed at fostering cooperation, including a framework for an economic and maritime security partnership. India also unveiled a series of infrastructure and economic initiatives designed to support the Maldives.
A key component of the discussions involved critical financial assistance aimed at addressing the Maldives' foreign exchange reserve challenges. India has approved a substantial USD400 million currency swap agreement along with a 30 billion rupee (approximately USD357 million) deal, in addition to granting a rollover of USD100 million in Treasury bills.
In a joint press conference, President Muizzu expressed his gratitude to Prime Minister Modi for the financial backing, highlighting India as a “key partner” that has consistently supported the Maldives in times of need. This visit marks Muizzu's first state trip to India since he took office last November, following his controversial ‘India Out’ campaign, which included the expulsion of Indian military personnel from the Maldives and a subsequent state visit to Beijing, where he secured funding for infrastructure projects.
New Delhi has been cautious of Muizzu’s pro-China stance, especially given concerns over the Maldives' cooperation with China in conducting research activities in the strategically important Indian Ocean. As India seeks to strengthen ties with the Maldives, the emphasis will likely remain on balancing regional influence amid growing geopolitical competition with China. This renewed commitment between the two nations reflects a shared interest in bolstering economic resilience and security in a rapidly changing regional landscape.
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