Maldives President Mohamed Muizzu, on Monday, expressed sincere appreciation to India for its significant financial assistance in alleviating the island nation’s debt burden. In his remarks, President Muizzu conveyed his optimism about forging even stronger ties between India and the Maldives, advocating for the signing of a free trade agreement. The Maldives administration is currently engaged in negotiations for a Free Trade Agreement (FTA) with the United Kingdom and aspires to achieve similar terms with India, President Muizzu highlighted. He emphatically stated that India will continue to be the Maldives’ most trusted and steadfast ally, emphasizing that there should be no doubt about this strong partnership. Muizzu’s reaffirmation of the close India-Maldives relationship came during his address at the official Independence Day celebrations in the Maldives on Friday. He lauded the Maldives’ foreign policy administration, acknowledging eight months of what he termed ‘diplomatic success,’ as reported by ANI quoting the Maldives President’s Office. President Muizzu extended gratitude to both India and China for their support in easing the Maldives’ debt repayment, thereby empowering the country to secure its economic sovereignty. He further disclosed that the Maldives government is actively engaged in discussions to negotiate currency swap agreements with India’s capital, New Delhi, and Beijing, China. These agreements, he explained, would play a crucial role in mitigating local shortages of US dollars. While relations between India and the Maldives have been marked by periods of tension in the past, the government led by President Mohamed Muizzu has adopted a conciliatory stance. In June 2024, President Muizzu attended the oath-taking ceremony of Prime Minister Modi, marking the latter’s assumption of office for a consecutive third term following his victory in the Lok Sabha elections. According to The Edition, a Maldives-based publication, data from last year indicates that the Maldives owes India 6.2 billion Maldivian Rufiyaa, equivalent to an estimated ₹ 338 crore. Earlier this year, the International Monetary Fund (IMF) had cautioned the Maldives about its high risk of debt distress if significant policy changes were not implemented. Prior to assuming office, President Mohamed Muizzu had adopted an ‘anti-India’ rhetoric, echoing the electoral campaign slogan of ‘India Out.’ The removal of Indian troops from the country was a central tenet of Muizzu’s party’s election campaign. Notably, he also deviated from the customary practice of making India his first official visit as President, instead choosing to travel to China. In December 2023, the Maldives announced its decision not to renew the Hydrographic Survey agreement with India. This development followed a heated exchange between New Delhi and Male after three Maldivian deputy ministers made derogatory remarks against Prime Minister Narendra Modi concerning his visit to Lakshadweep. (with agency inputs)
