India and the Maldives appear to have pushed the rancour of the past firmly behind them.
On his first bilateral visit to India, President Mohammed Mizzu said in an interview that “Maldives will never do anything to undermine the security of India. While we enhance cooperation with other countries in various sectors, we remain committed to ensuring our actions do not compromise the security and stability of the region.”
Muizzu and his host Prime Minister Modi adopted a “Comprehensive Economic And Maritime Security Partnership” Vision, which Muizzu said, will encompass development cooperation, trade and economic partnerships, digital and finance initiatives, energy projects and more.
“India and Maldives relations are centuries old,” Modi said during remarks at a media briefing. “India is Maldives nearest neighbour and close friend. Maldives holds an important position in our neighbourhood policy and SAGAR vision. India has always played the role of first responder for Maldives,” he said recalling India’s role during the Indian Ocean tsunami of 2004 and more recent crises including Covid.
The two leaders agreed to begin negotiations towards a free trade area. Over 90% of the Maldives exports comprises fish products which enjoy duty free access into India. Clearly, the intention maybe to draw more Indian investment into the Maldives.
Five MoUs were signed including a $400 million currency swap, India had earlier subscribed to a $50 million treasury bill which will help bridge a foreign exchange deficit. The two leaders virtually inaugurated an airport runaway and handed over 700 housing units in the area of Hulhumale, an artificial island that is intended to meet the future industrial and commercial needs of the Male region.
Maldives also wants Indian tourists to return “India is the largest tourism source market for the Maldives,” Muizzu said, “I hope to welcome more Indian tourists.”
Ties between the two countries had hit a low after Muizzu won the presidency last year on an anti-India plank. India also withdrew a 90-man team on the island to train local personnel and maintain a helicopter and a Dornier aircraft.
