India Extends $565 Million Credit Line to Maldives, Trade Talks Begin
COLOMBO, Sri Lanka (AP) — Indian Prime Minister Narendra Modi announced a significant $565 million line of credit to the Maldives during his visit to the island nation on Friday. This move coincides with the commencement of formal discussions for a free trade agreement between the two countries.
Modi's visit to the Maldives, renowned for its luxury tourism, commemorates the 60th anniversary of both the nation's independence and the establishment of diplomatic ties between India and the Maldives. The announcement was made during a joint press briefing with Maldives President Mohamed Muizzu.
This two-day visit is viewed as strategically vital for India's ambition to secure its influence over the Indian Ocean's seas and shipping lanes, particularly in the face of growing regional competition from China. It also signals a thaw in diplomatic relations, which were strained following the election of President Muizzu, who is seen as having pro-China leanings, in 2023.
The Maldives holds a strategically important position in the Indian Ocean, making it a point of influence for both India and China. During the visit, Modi oversaw the signing of agreements promoting cooperation in key sectors including fisheries, healthcare, tourism, and digital development. He also officially transferred several heavy vehicles to the Maldives' defense forces.
"India is Maldives' closest neighbor. Maldives holds an important place in both India’s neighborhood-first policy and ocean vision," Modi stated, emphasizing the importance of the relationship between the two nations.
Key Takeaways:
- India provides a $565 million credit line to the Maldives.
- Formal free trade agreement talks are initiated.
- Agreements signed to boost cooperation in fisheries, health, tourism, and digital development.
- India strengthens its strategic position in the Indian Ocean.