Image Credit - PM India official website
India, Maldives Sign $400 Million Currency Swap Deal to Boost Economic Ties
India and the Maldives on Monday signed a currency swap agreement worth $400 million, aimed at helping the island nation overcome foreign exchange reserve challenges and bolstering economic cooperation between the two countries. This agreement was part of a series of initiatives announced during Maldivian President Mohamed Muizzu’s four-day state visit to India.
Key Developments in India-Maldives Ties
Prime Minister Narendra Modi and President Muizzu also inaugurated the Rupay card in the Maldives and launched a new runway at the Hanimadhoo International Airport, signaling deeper financial and infrastructural cooperation. The two leaders held extensive discussions at Hyderabad House in New Delhi and agreed to expedite ongoing projects and explore new avenues of collaboration.
As part of the bilateral talks, India handed over 700 social housing units to the Maldives, constructed under the EXIM Bank’s buyer’s credit facilities. “Today, we have inaugurated the redeveloped Hanimaadhoo Airport. Now, the Greater Male Connectivity Project will also be expedited. We will support the development of a new commercial port in Thilafushi,” said Modi during a joint press conference with Muizzu.
Focus on Strengthening Economic and Maritime Security Partnership
Both leaders emphasized the need to enhance economic ties, with Prime Minister Modi announcing the start of discussions on a Free Trade Agreement (FTA) between the two nations. He reiterated India’s commitment to strengthening the Maldives’ economic position and maritime security under the “Neighbourhood First” policy and SAGAR (Security and Growth for All in the Region) vision.
President Muizzu expressed gratitude for India’s ongoing support and described the agreements as crucial steps in deepening India-Maldives relations. Earlier in the day, he was accorded a ceremonial welcome at Rashtrapati Bhavan by President Droupadi Murmu, with Prime Minister Modi also present at the event
