On October 7, 2024, Indian Prime Minister Narendra Modi and Maldives President Dr. Mohamed Muizzu held a high-level meeting, reaffirming the strong bilateral relationship between their countries. The leaders comprehensively reviewed the progress of existing ties, particularly under India’s “Neighbourhood First” policy, and discussed steps to deepen cooperation in the coming years. Their discussions focused on a wide range of topics, including economic development, financial assistance, and strengthening maritime security in the Indian Ocean region.
Commitment to Development and Financial Assistance
Prime Minister Modi reiterated India’s unwavering commitment to the Maldives’ development journey, emphasizing the “Neighbourhood First” policy and India’s Vision SAGAR (Security and Growth for All in the Region). The PM assured continued support to the Maldives, particularly in addressing the financial challenges faced by the island nation. President Muizzu expressed his gratitude for India’s timely emergency financial assistance, highlighting the rolling over of Treasury bills worth USD 100 million in May and September 2024 by the State Bank of India, which helped the Maldives address immediate financial needs.
In addition, India extended further support by providing a bilateral currency swap agreement worth USD 400 million and INR 30 billion, which will be crucial for the Maldives in stabilizing its economy. Both leaders agreed on the need to implement additional measures to address the Maldives’ financial challenges, underscoring the close economic partnership between the two countries.
A New Strategic Framework for Cooperation
The two leaders acknowledged that the time was ripe for a comprehensive transformation of bilateral relations, aiming to elevate the partnership into a “Comprehensive Economic and Maritime Security Partnership.” This new framework would focus on people-centric development, enhancing economic ties, and ensuring security in the Indian Ocean region.
In line with this vision, both sides committed to expanding political exchanges between leadership and parliamentarians from both countries. This initiative will also foster institutional cooperation between the two parliaments, further deepening their democratic ties.
Development Cooperation and Infrastructure Projects
India’s role in the Maldives’ development journey has been instrumental, with multiple projects already benefiting the Maldivian people. Both leaders pledged to advance ongoing development partnerships in critical areas, including infrastructure projects like ports, airports, housing, hospitals, and road networks. One of the flagship initiatives discussed was the timely completion of the Greater Malé Connectivity Project (GMCP), a vital project connecting the Maldives’ islands and boosting economic growth.
Both sides also explored collaboration for a new state-of-the-art commercial port at Thilafushi island to ease congestion at Malé port. This new facility will enhance cargo handling capacity, contributing to the Maldives’ economic growth.
In addition, India will support the Maldives in tackling housing challenges, with a commitment to accelerating ongoing social housing projects.
Strengthening Economic and Trade Cooperation
Given the untapped potential in bilateral trade and investment, India and the Maldives agreed to explore the possibility of a Bilateral Free Trade Agreement (FTA). Discussions will focus on trade in goods and services, enhancing trade linkages, and promoting investment opportunities in both countries. The leaders also agreed to operationalize trade transactions in local currencies to reduce dependency on foreign exchange, fostering smoother economic relations.
India also pledged to support Maldives’ efforts to diversify its economy by strengthening cooperation in agriculture, fisheries, and oceanography. Expanding tourism cooperation was another priority, with both nations agreeing to boost tourism through marketing campaigns and enhanced air connectivity.
Maritime and Security Cooperation
Maritime security was a key focus of the discussions, as the Indian Ocean Region faces multiple security challenges, including piracy, illegal fishing, drug smuggling, and terrorism. The leaders recognized that India, as a trusted partner, will continue to play a pivotal role in enhancing the Maldives’ security capabilities. India will support the Maldives National Defence Force (MNDF) with defense platforms, radar systems, and infrastructure development, including the MNDF’s ‘Ekatha’ harbor project.
Both countries also agreed to continue their close collaboration on hydrographic matters, disaster response, and risk mitigation. With India’s assistance, the Maldives will receive training and technical support to strengthen its maritime surveillance and monitoring capabilities. This cooperation aims to ensure a safer and more secure Indian Ocean region, benefiting not only the Maldives and India but also contributing to regional stability.
India also committed to supporting the construction of state-of-the-art defense infrastructure, such as the Ministry of Defence building in Malé, which will enhance the Maldives’ modern defense capabilities. Furthermore, India will extend financial assistance to develop MNDF infrastructure and increase training slots for Maldivian defense and police personnel through customized programs in India. These initiatives reflect India’s dedication to helping the Maldives address both traditional and non-traditional security challenges in the Indian Ocean.
Expanding People-to-People Linkages and Capacity Building
One of the cornerstones of India-Maldives relations is the strong people-to-people connection. Both sides expressed their intention to further strengthen these ties by establishing consulates in Bengaluru and Addu City, fostering greater cultural, economic, and personal connections between the two countries. Enhanced air and maritime connectivity will also promote tourism, trade, and ease of travel.
India’s commitment to supporting the development of higher education institutions and skilling centers in the Maldives was emphasized during the discussions. As part of this initiative, India will collaborate with the Maldives to establish a startup incubator and accelerator to tap into the potential of the Maldivian youth, encouraging innovation and entrepreneurship.
Furthermore, a new program aimed at empowering women entrepreneurs in the Maldives will be launched, providing them with skills training and support to enhance their participation in the economy.
Health Cooperation and Digital Transformation
Health cooperation was another key area of discussion. India will help the Maldives improve its healthcare system by facilitating access to quality and affordable medical services. India’s expertise in healthcare will be extended to support mental health services, establish drug rehabilitation centers, and improve healthcare infrastructure across the Maldives.
Additionally, the two countries agreed to enhance digital and financial cooperation. India’s digital public infrastructure initiatives, including the Unified Payments Interface (UPI) and the Gati Shakti Scheme, will be introduced in the Maldives, enabling better governance and service delivery. The launch of RuPay cards in the Maldives is expected to ease payment transactions for Indian tourists, and both sides will work towards offering similar services to Maldivian nationals visiting India.
Renewable Energy and Sustainability Initiatives
Recognizing the importance of energy security, both leaders agreed to collaborate on solar power and renewable energy projects in the Maldives, helping to reduce energy costs and achieve sustainability goals. India will assist in conducting a feasibility study to enable the Maldives’ participation in the One Sun One World One Grid initiative, further strengthening energy cooperation between the two nations.
Cooperation at Regional and Multilateral Fora
India and the Maldives reaffirmed their commitment to work closely at regional and multilateral platforms, particularly in advancing maritime security through the Colombo Security Conclave (CSC). Both countries have been founding members of the CSC, and their cooperation in the Indian Ocean Region remains a priority. With the signing of the CSC Charter, they aim to create a safe and secure maritime environment that promotes peace and prosperity in the region.
Conclusion
The high-level meeting between Prime Minister Narendra Modi and President Mohamed Muizzu was a testament to the historically close and special relationship between India and the Maldives. Both leaders reaffirmed their commitment to deepening this relationship through economic development, maritime security, and people-centric initiatives. With a clear vision for the future, they charted a roadmap for comprehensive economic and maritime cooperation that will not only benefit the people of both countries but also ensure stability and prosperity in the broader Indian Ocean region.
The leaders also decided to establish a High-Level Core Group to monitor and oversee the implementation of the new partnership framework. This body will ensure timely and effective execution of the agreements, helping to steer India-Maldives relations into a new era of cooperation and growth.
