In a significant step to reset and strengthen bilateral ties, Indian Prime Minister Narendra Modi arrived in the Maldives on Friday for a two-day official visit. This marks his first trip to the island nation since President Mohamed Muizzu assumed office in November 2023. The visit is particularly symbolic as it coincides with the Maldives’ 60th Independence Day celebrations and 60 years of diplomatic relations between the two countries. PM Modi will attend the celebrations as the guest of honour.
This is Modi’s third visit to the Maldives since taking office in 2014, and it comes at a time of evolving regional dynamics and renewed diplomatic engagement. India was among the first countries to recognize the Maldives after its independence in 1965, and the latest visit is aimed at reaffirming the close ties and historical bonds between the two nations.
A key highlight of the visit is the expected launch of India’s Unified Payments Interface (UPI) services in the Maldives. The rollout of UPI is poised to enhance financial connectivity and digital infrastructure, enabling seamless cross-border transactions and boosting tourism-related payments.
In addition, the two sides are likely to kick-start discussions on a Free Trade Agreement (FTA) targeting completion in 2025. This initiative follows a 1981 trade pact and aims to deepen economic cooperation amid growing trade volumes.
Trade between India and the Maldives has seen a sharp rise in recent years. In 2023, bilateral trade stood at approximately $548 million, more than double the $245 million recorded in 2020. India mainly imports scrap metal from the Maldives while exporting pharmaceuticals, engineering goods, cement, rice, spices, fruits, vegetables, and poultry products.
Such growth underscores the importance of exploring broader economic partnerships, particularly in sectors like infrastructure, healthcare, tourism, and digital services.
PM Modi’s visit comes against the backdrop of the Maldives' Free Trade Agreement with China, which came into effect on January 1. India’s diplomatic outreach and strategic push are seen as part of efforts to maintain its traditional influence in the Indian Ocean Region and counterbalance China's growing presence.
The leaders are also expected to review the Comprehensive Economic and Maritime Security Partnership, signed in October 2024. This partnership focuses on enhancing maritime cooperation, regional security, and disaster response mechanisms in the Indian Ocean.
President Muizzu's government, which had initially signaled a preference for stronger ties with China, is now engaging actively with India, suggesting a pragmatic shift in Malé’s foreign policy approach. PM Modi’s visit is being seen as a positive gesture toward rebuilding trust and reinvigorating cooperation.
As India and the Maldives celebrate 60 years of diplomatic relations, the visit marks not just a ceremonial milestone but a potential turning point in regional diplomacy. With shared interests in economic development, digital transformation, and maritime security, the two nations appear ready to embark on a renewed journey of partnership.
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