(MENAFN- IANS) Male, July 29 (IANS) Prime Minister Narendra Modi's recently concluded two-day state visit to the Maldives is being lauded as an "extremely productive and defining moment", demonstrating a significant turnaround in bilateral ties, after a period of strained ties characterised by Maldivian President Mohamed Muizzu's "India Out" campaign."

Through the two-state visit to the Maldives, PM Modi reiterated India's commitment to its 'Neighbourhood First' policy. PM Modi, who was the Guest of Honour for the 60th Independence Day celebrations, demonstrated India's role as a trusted friend and "First Responder" in the Indian Ocean region.

PM Modi's visit to the Maldives was the first by any Head of State or government since Muizzu assumed office, successfully navigating a period of strained bilateral ties characterised by the "India Out" campaign, Asian News Post reported.

During the visit, the two leaders reiterated their shared goals of peace, stability, and prosperity, laying the roadmap for a comprehensive economic and maritime security partnership.

During the visit, PM Modi announced a Line of Credit worth INR 4,850 crore for infrastructure development in the Maldives, notably extended for the first time in Indian Rupee.

The financial assistance announced by India is set to bolster critical sectors of the Maldives, including education, healthcare and housing and enhance the security capabilities.

In addition, an amendatory agreement was signed to reduce annual debt repayment obligations from USD 51 million to USD 29 million for alleviating the Maldives' debt burden, marking a 40 per cent reduction.

India and the Maldives announced the initiation of negotiations for a Free Trade Agreement (FTA) and expressed commitment to finalising a bilateral investment treaty. The two nations also signed several agreements across various sectors, including fisheries, meteorology and digital infrastructure.

PM Modi also handed over 3300 housing projects and inaugurated a roads and drainage system project, along with six high-impact community development projects.

In addition, India will provide 72 heavy vehicles to the Maldivian Ministry of Defence, boosting their defence capabilities. PM Modi and President Muizzu released a commemorative stamp marking 60 years of diplomatic ties between the two nations.

PM Modi has consistently expressed India's unwavering commitment to bolstering cordial ties with neighbouring nations and elevating regional cooperation to a new vision. The renewed bonhomie with the Maldives showcases a powerful demonstration of this vision.

PM Modi's visit to the Maldives offers valuable lessons in leveraging India's rapid economic growth. Sri Lanka, by aligning its economic strategies and strengthening partnerships with India, can benefit significantly from increased trade, investment, and collaborative development initiatives, contributing to its stability and prosperity in the South Asian landscape.

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