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India on Monday asserted that its friendly ties with the Maldives will continue as Prime Minister Narendra Modi and President Mohamed Muizzu unveiled a blueprint for comprehensive economic and maritime cooperation, signalling a reset of the relationship that had hit a rough patch last year due to anti-New Delhi rhetoric.
Modi and Muizzu reviewed the bilateral relationship and agreed on a currency swap agreement that would grant access to the Maldives to $400 million support and an additional Rs 3,000 crore.
"I am thankful to the Indian government for providing support in the form of Rs 30 billion, in addition to the $400 million bilateral currency swap agreement which will be instrumental in addressing the foreign exchange issues we are facing right now," Muizzu said after wide-ranging talks with Modi at the Hyderabad House in New Delhi.
"We have adopted a 'Comprehensive Economic and Maritime Security Partnership' to add a strategic dimension to the bilateral ties," Modi said.
The two leaders also launched Rupay card in the Maldives, virtually inaugurated the new runway at the Hanimaadhoo international airport and agreed to further strengthen bilateral relations that had hit a rocky patch last year.
"In future, we will work to connect India and the Maldives through UPI as well," Modi said.
Earlier, Muizzu, who arrived on a five-day state visit on Sunday, was accorded a ceremonial welcome at the forecourt of the Rashtrapati Bhavan by President Droupadi Murmu. Prime Minister Modi was also present on the occasion.
The Maldivian president is scheduled to visit Agra and Mumbai on Tuesday and Bengaluru on Wednesday before returning to Male on Thursday.
Muizzu won the presidential election last year on the 'India out' campaign and asked New Delhi to withdraw its military personnel posted in the archipelago nation by May this year.
The bilateral ties took a hit when Maldivian ministers made critical remarks about Modi. However, Muizzu has since toned down his anti-India stance and even sacked ministers who were critical of Modi.
"Yaarana jaari rahega (friendly ties will continue)," Foreign Secretary Vikram Misri said when asked how India managed to bridge the sharp divide in the bilateral ties that had emerged last year.
The foreign secretary said that the relationship between India and the Maldives was based on a number of substantive pillars.
"Our attempt in this visit is to try and reinforce this already strong relationship that is there and build on the numerous shared interests. Today, there was recognition by both leaders of the importance of this relationship," Misri said.
Asked about the currency swap agreement, the foreign secretary said, "The idea is to bolster the Maldives' foreign exchange reserves and generate confidence in its existing forex position and allow them to enter into deals or discussions where they require this enhanced foreign exchange that they can draw on."
Modi and Muizzu also unveiled 'A Vision for Comprehensive Economic and Maritime Security Partnership', a document that encapsulates the various aspects of the cooperation.
Misri said the vision document sets the blueprint for the relationship going forward.
The two sides also agreed to collaborate in the development of a commercial port at Thilafushi island with enhanced cargo handling capacity in order to decongest the Male port.
India also agreed on repair and refit of Maldivian Coast Guard Ship Huravee on gratis basis.
The two leaders also agreed to explore collaboration for the development of transshipment facilities and bunkering services contributing towards the Maldives Economic Gateway project at Ihavandhippolhu and Gaadhoo islands.
They also agreed to jointly work to harness the full potential of Hanimaadhoo and Gan airports that are being developed with Indian assistance as well as other airports of the Maldives, and in establishing 'Agriculture Economic Zone', tourism investments in Haa Dhaalu atoll and fish processing and canning facility at Haa Alifu atoll with Indian assistance.
The two leaders also agreed to initiate discussion on a free trade agreement and also discussed opening of an Indian consulate in Addu and a Maldives consulate in Bengaluru.
Earlier this year, India had come to the assistance of the Maldives by agreeing to rollover the Treasury Bills subscribed by the State Bank of India amounting to $100 million in May and September for a further period of one year.