In a major diplomatic breakthrough, India and the Maldives have agreed to accelerate the negotiations for a Free Trade Agreement (FTA), a new height of cooperation after recent tensions.
Key Highlights
FTA Negotiations Commenced:
Indian Foreign Secretary Vikram Misri and Maldivian President Mohamed Muizzu made the official declaration of FTA negotiations during Prime Minister Modi's visit to Malé. Both countries expect to finalize the deal "fairly quickly," which represents a step towards closer economic integration.
Extended Major Credit Line:
India has extended a ₹4,850 crore ($565 million) Line of Credit for Maldivian development schemes, namely in the infrastructure and fisheries sectors. An amended agreement reduces Maldives' debt repayment to India annually.
Several MOUs Signed:
New memorandums were inked in areas like fisheries, digital payments (like UPI integration), meteorology, aquaculture, and acceptance of pharmacopoeia. These are aimed at enhancing connectivity, technology transfer, and health cooperation.
Security and Capacity Building:
India donated 72 vehicles and specialized equipment to the Maldivian Defence Ministry, reaffirming its intention to cooperate in maritime and regional security.
Diplomatic Reset
The comments come in tandem with the 60th anniversary of diplomatic relations and are considered a milestone for bilateral relations, particularly following the recent tensions caused by the "India Out" campaign in the Maldives.
What They Said "We've done our work, and the evidence is here for you to see… We should be able to finish the FTA fairly shortly," — Indian Foreign Secretary Vikram Misri
Source: The Hindu Business Line, NDTV, The Economic Times, India Today, Reuters