In a significant step toward enhancing bilateral relations, India and the Maldives have agreed to conduct trade payments in local currencies. Additionally, both nations have decided to initiate discussions on a Free Trade Agreement (FTA).
This decision was made during a bilateral meeting on Monday between Maldives President Mohamed Muizzu, who is on an official visit to India, and Indian Prime Minister Narendra Modi. The meeting saw the signing of five agreements, including currency swap arrangements, and the launch of three key facilities.
Key Agreements and Initiatives:
Prime Minister Modi emphasized the growing economic and diplomatic cooperation between the two nations, stating, “We have decided to initiate discussions on a Free Trade Agreement. Both countries are also focusing on digital connectivity, as evidenced by the launch of the RuPay card in the Maldives. In the future, the Maldives will also be connected to India’s UPI system.”
Additionally, the two countries have agreed to open new consulates to facilitate diplomatic and commercial exchanges. India will open a consulate in Addu, while the Maldives will establish a consulate in Bengaluru.
Bilateral Agreements Signed:
- Currency Swap Arrangement:
A crucial agreement was signed for currency exchange between India and the Maldives, with a deal worth INR 3,000 crore (USD 400 million). This will further enhance economic collaboration between the two nations. - Digital Payment Integration:
The RuPay card has been launched in the Maldives to boost digital connectivity. The countries plan to integrate UPI (Unified Payments Interface) in the near future, further enhancing cross-border digital payments. - Infrastructure Development:
Both leaders discussed cooperation in infrastructure development. As part of this, the new runway at Hanimaadhoo International Airport in the Maldives was virtually inaugurated by PM Modi and President Muizzu. The project is part of a larger initiative supported by India, including the Greater Male Connectivity Project. - Trade and Consular Relations:
The agreement includes setting up new consulates in Addu (Maldives) and Bengaluru (India), ensuring smoother diplomatic relations and trade facilitation between the two countries.
Five Key Agreements Signed:
- Currency Exchange Arrangement:
Both countries agreed on currency swap arrangements to facilitate trade and economic cooperation. - Defense Training:
The National Defense University of India and the Maldives’ Policing and Law Enforcement Agency signed a training agreement. - Anti-Corruption Cooperation:
India’s Central Bureau of Investigation (CBI) and the Maldives’ Anti-Corruption Commission agreed to collaborate in the fight against corruption. - Judicial Training Agreement:
The National Judicial Academy of India renewed its agreement with the Maldives Judicial Commission for further training initiatives. - Sports Collaboration:
Both nations agreed to enhance cooperation in the field of sports.
Focus on Centuries-Old Ties:
Prime Minister Modi highlighted the deep historical and cultural ties between India and the Maldives, stating, “India and the Maldives share a relationship that is centuries old. India has always been the first responder to the Maldives’ needs, whether it was providing essential supplies or delivering COVID-19 vaccines.”
In recognition of these long-standing relations, PM Modi accepted President Muizzu’s invitation to visit the Maldives soon, further solidifying the diplomatic and strategic partnership between the two nations.
Table: Summary of Agreements Between India and Maldives
Agreement | Details |
---|---|
Currency Swap Arrangement | INR 3,000 crore (USD 400 million) currency exchange deal signed. |
Defense Training Agreement | Collaboration between India’s National Defense University and Maldives’ Policing Agency. |
Anti-Corruption Collaboration | CBI and Maldives’ Anti-Corruption Commission to work together. |
Judicial Training Agreement | Renewal of training cooperation between National Judicial Academy (India) and Maldives’ Judicial Commission. |
Sports Cooperation Agreement | Both nations agreed to collaborate on sports initiatives and exchanges. |
Digital Payment Integration | Launch of RuPay in the Maldives and future integration with UPI. |
Infrastructure Cooperation | Inauguration of Hanimaadhoo Airport’s new runway and speeding up of the Greater Male Connectivity Project. |
Consulate Establishments | New consulates to be opened in Addu (Maldives) and Bengaluru (India). |