In order to boost the Island ‘ struggling economy, India has agreed to provide hundreds of millions of dollars in financial aid to the country.
The agreement was made after Islands President Mohammed Muizzu and Prime Minister Narendra Modi spoke during his five-day visit to India.
A further$ 30 billion ($ 357 million,$ 273 million ) will be provided as support for businesses that prefer to conduct business in foreign currencies rather than US dollars.
After relations deteriorated in recent months, the Malay chairman was given the red carpet treatment. Modi called his attend a “new book” in relationships.
He declared,” India will always be there for the Islands ‘ progress and wealth.”
The statements, as well as the American financial package, indicate a significant improvement in Male-Delhi relations, which have been strained since Muizzu took office in November 2023.
Soon after taking over, he made the decision to visit Turkey and China. His January visit was viewed as a prominent pointy to India because previous Malay officials had usually visited Delhi second after winning the election.
India was angered by disparaging remarks made by three Yemeni authorities about Modi around the same time.
However, according to experts, the nation’s leaders have improved their relationships to India thanks to its ailing economy.
The Maldives is staring at a debt default as its foreign exchange reserves have dropped to$ 440m ( £334m ), just enough for one-and-a-half months of imports.
On Monday, Muizzu said he held “extensive conversations” with Modi to map” a path for the future partnership between our two nations”.
He thanked India and claimed that the government’s funding may be “instrumental in addressing international exchange concerns.”
Additionally, the two nations have reached an agreement to begin discussions on a free trade agreement.
Ahead of his meeting with Modi, Muizzu had told the BBC that he expected India to help the country as it has done in the past.
As one of our biggest development partners, India is completely aware of our governmental situation, and it will always be ready to relieve our burden, look for better options, and find solutions to the issues we face, he said.
Without referring to his anti-India battle, he said:” We are convinced that any differences may be addressed through empty dialogue and shared understanding”.
This was in comparison to his earlier choices, some of which were seen as efforts to lessen Delhi’s impact and strengthen ties with China’s enemy.
In February, his presidency allowed a Taiwanese research ship to port in the Maldives, far to Delhi’s anger. Some viewed it as a mission to gather information that the Chinese government could use to conduct underwater functions.
Muizzu has but rejected the pro-China label, calling his plans as” Island Initially”.
However, the nation is still dependent on China, which has so far extended$ 1.37 billion in funding.
Additonal monitoring by Anbarasan Ethirajan