On October 7, 2024, Indian Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu met to forge a stronger partnership, focusing on redefining their bilateral relationship as they aim to transform it comprehensively. During this pivotal meeting, they underscored the importance of enhancing economic cooperation and maritime security between their nations, two countries intricately linked by their geographical proximity and historical ties.
Prime Minister Modi emphasized the significance of Maldives within India's 'Neighbourhood First' Policy and its vision known as SAGAR—Security and Growth for All in the Region. He reiterated India’s unwavering commitment to support the Maldives on its developmental path, which he affirmed during his discussion with President Muizzu. This meeting was characterized by mutual acknowledgment of the past assistance provided by India, especially during challenging times faced by the Maldives, such as the 2014 water crisis and the global Covid-19 pandemic.
Expressing gratitude, President Muizzu acknowledged India's financial support, which included rolling over treasury bills worth USD 100 million and extending USD 400 million through a bilateral currency swap agreement. This financial assistance has offered the Maldives much-needed support as it confronts fiscal challenges.
One of the major topics discussed was the path forward, shifting focus toward building what they termed the Comprehensive Economic and Maritime Security Partnership. Their discussions touched on various aspects, including infrastructure development and increased cooperation across multiple sectors, including trade, health, and energy.
Infrastructure cooperation will yield tangible outcomes, benefitting everyday Maldivians. The leaders agreed to expedite various projects, such as the Greater Malé Connectivity Project (GMCP), which aims to improve transport links within the archipelago and facilitate greater economic activity. They also highlighted plans to develop Thilafushi Island’s commercial port, geared toward relieving the pressure on Malé’s congested port.
Further agreements touched upon collaborative efforts for establishing transshipment facilities and bunkering services, with aspirations to boost the Maldives Economical Gateway project at Ihavandhippolhu and Gaadhoo Islands. This collaboration could pivotally position the Maldives as a central maritime hub within the Indian Ocean.
Recognizing the untapped potential for trade and investment, both nations agreed to initiate discussions on establishing a Bilateral Free Trade Agreement focusing on goods and services. They also discussed operationalizing local currency transactions to lessen dependency on foreign currencies—proposing to support the growth of their trade linkages.
Agreement was also made on enhancing digital cooperation. By sharing expertise on digital and financial services, they aim to enrich governance mechanisms and improve the delivery of services. The recent launch of the RuPay card service by India within the Maldives was heralded as another step to ease transactions and stimulate tourism.
Energetics is another frontier where both countries agreed to extend cooperation, particularly through solar energy initiatives, which align with global shifts toward sustainable energy practices. This partnership includes exploring the Maldives' participation in broader global efforts like the One Sun One World One Grid initiative, allowing collaborative ventures aimed at energy resource management.
Health cooperation was also highlighted as key. India is poised to assist the Maldives by improving healthcare infrastructure, including the establishment of drug de-addiction centers and enhancing mental health services. Aiming for increased access to affordable medicines, the countries plan to launch India-Maldives Jan Aushadhi Kendras across the archipelago to provide quality generic medications.
Capacity development surfaced as another commitment, with both leaders agreeing to provide training programs for Maldivian civil servants. Adjunct programs would aim to empower women entrepreneurs, thereby increasing their participation within the economic framework.
During the meeting, President Muizzu extended formal invitations for Prime Minister Modi to visit the Maldives next year, promising to collaborate on various issues effectively. This invitation was accepted with much enthusiasm, emphasizing the blossoming relationship between the two nations.
For the Maldives, strongly supported by India, this newfound partnership is expected to serve as the pivotal anchor of stability across the Indian Ocean Region. Their commitment to sovereignty, development, and collaborative prosperity could set the stage for significant advancements.
They wrapped up the meeting with pledges to pave the way forward by addressing pressing issues and advancing economic ties. Both leaders recognized the moment as being ripe for establishing new bilateral frameworks, determined to deepen cooperation through various channels.
The next steps will weigh heavily on how well both nations implement the strategic vision they laid out, which if accomplished, will likely lead to enhanced bilateral relations, stability, and shared prosperity encompassing economic, maritime, and social dimensions.
