India is the “closest and most trusted partner” of the Maldives, President Mohamed Muizzu said on Friday during Prime Minister Narendra Modi’s visit to Malé.

“India’s partnership remains invaluable,” Muizzu said during a press briefing alongside Modi.

Muizzu announced the start of negotiations for a free trade deal between the two countries, describing the agreement as a “landmark initiative” to deepen economic cooperation.

Describing India as a key source market for tourism in the Maldives, he added that the two sides are working to enhance direct flight connectivity. Muizzu also outlined plans for technical collaboration in waste management, renewable energy, biodiversity, and water and sanitation.

Modi announced a Rs 4,850-crore (about $560 million) line of credit for development projects in the island nation. New Delhi also agreed to reduce the island nation’s annual debt repayment by 40%, from $51 million to $29 million.

President Mohamed Muizzu and Indian Prime Minister Narendra Modi. Photo: Dr Mohamed Muizzu, @MMuizzu/X
President Mohamed Muizzu and Indian Prime Minister Narendra Modi. Photo: Dr Mohamed Muizzu, @MMuizzu/X

India is proud to be the “most trusted friend” of the Maldives, Modi said, and reaffirmed that New Delhi would continue to serve as the island nation’s first responder in times of crisis.

“The Maldives holds an important place in both India’s Neighbourhood First Policy and the MAHASAGAR vision,” the prime minister stated.

MAHASAGAR refers to the Indian government’s Mutual and Holistic Advancement for Security and Growth Across Regions policy.

“Mausam chahe jaisa bhi ho [no matter what the weather may be] our friendship will always remain bright and clear,” Modi said.

Both leaders discussed strengthening cooperation in trade, defence, maritime security, climate action and health, the Ministry of External Affairs said on Friday.

They also witnessed the exchange of six memoranda of understanding, including one on digital public infrastructure and another paving the way for Unified Payments Interface payments in the Maldives.

The partnership with Malé is of strategic importance to New Delhi amid its geopolitical competition with China in the Indian Ocean region.

Thaw in relations

This is Modi’s first visit to the Maldives since diplomatic ties got strained in January 2024 after remarks by three deputy ministers of the island nation about the Indian prime minister’s social media posts.

The posts showed the prime minister snorkelling during his recent visit to Lakshadweep. Maldivian minister Maryam Shiuna had reacted to the picture calling Modi a “clown”. “The puppet of Israel, Mr Narendra diver with life jacket,” she had said in a social media post, which was subsequently deleted.

Following an uproar on social media by some Indians, Shiuna and two other ministers – Malsha Shareef and Mahzoom Majid – were suspended on January 7.

Muizzu, who was widely seen as sympathetic to Beijing’s interests, had led an “India Out” political campaign during the tenure of former Maldivian President Ibrahim Solih. He protested Solih’s policies that were perceived to be friendly towards New Delhi.

Amid the diplomatic row, Muizzu had said that the Maldives may be a small country but that does not give anybody the license to “bully” the island nation.

Amid the diplomatic spat with India, in January 2024, Muizzu also made his first official state visit to China.

India is typically the first country that new Maldivian presidents visit after assuming power. Muizzu had first requested a visit to New Delhi but was turned down, according to reports.

Ahead of his visit to India in October, Muizzu denied having espoused an “India Out” policy and claimed that he only advocated for the removal of foreign military personnel in keeping with the wishes of his citizens.

Removing India’s military presence from the Maldives was a key poll plank for Muizzu in November 2023.

India was the only foreign power with a military presence in the Maldives. A group of Indian defence personnel had maintained radar stations and surveillance aircraft in the archipelago. Indian warships also helped patrol the Maldives’ exclusive economic zone.

In May 2024, New Delhi said that it had replaced its military personnel in the Maldives with “competent Indian technical personnel” for operating aviation platforms.