Mon Oct 07 14:01:43 UTC 2024: ## India and Maldives Strengthen Ties with Currency Swap and Development Projects
**New Delhi, India:** India and the Maldives have strengthened their bilateral ties with the signing of a currency swap agreement and a series of development projects, marking a significant shift in relations after a period of strain.
Prime Minister Narendra Modi and visiting Maldivian President Mohamed Muizzu, who is on a four-day state visit, signed the currency swap agreement, which aims to help the Maldives overcome its foreign exchange reserve issues. The two leaders also launched the Rupay card in the Maldives, inaugurated the new runway at the Hanimadhoo International Airport, and agreed to expedite the Greater Male Connectivity Project.
India also handed over 700 social housing units built with EXIM Bank’s buyer’s credit facilities and pledged support for the development of a new commercial port in Thilafushi.
Modi emphasized the importance of Maldives in India’s neighborhood policy and SAGAR vision, stating that the two countries have decided to initiate discussions on a Free Trade Agreement to further strengthen economic ties.
India also extended vital budgetary support to the Maldivian government by rolling over a USD 50 million Treasury Bill for another year, highlighting its commitment to supporting the island nation during its economic downturn.
The visit marks a significant turnaround in relations between the two countries, which had faced challenges following Muizzu’s election last year. Muizzu’s initial “India out” campaign and subsequent criticism of India by Maldivian ministers had strained bilateral ties. However, Muizzu has since toned down his anti-India stance and taken steps to repair relations.
The series of agreements and projects demonstrate India’s commitment to deepening its partnership with the Maldives, a strategically important nation in the Indian Ocean region.
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