Modi’s Maldives Visit Signals Diplomatic Reset With UPI Rollout And ₹30 Billion Swap Line

Image Source : NDTV

Prime Minister Narendra Modi’s upcoming visit to the Maldives on July 25–26 marks a pivotal moment in India-Maldives relations, with a renewed focus on economic cooperation, digital integration, and regional stability. The trip coincides with the 60th anniversary of Maldivian independence and diplomatic ties between the two nations.

Key Highlights From The Bilateral Agenda

- India will launch UPI services in the Maldives to boost tourism and facilitate seamless digital payments for Indian travelers.
- A ₹30 billion currency swap line will be activated to support the Maldives’ foreign exchange reserves, supplementing the nearly exhausted USD 400 million swap line.
- Talks will include finalizing a Free Trade Agreement and advancing the Greater Malé Connectivity Project, which links four islands and is seen as a regional infrastructure game-changer.

Strategic And Political Context

- This is Modi’s first visit since President Mohamed Muizzu took office in November 2023, following a period of diplomatic strain over military presence and political rhetoric.
- India has replaced military personnel with technical staff and reaffirmed its commitment to the Comprehensive Economic and Maritime Security Partnership.
- The visit also includes discussions on renewable energy, fisheries, and defense cooperation, including support for the Maldives National Defence Force infrastructure.

Outlook

The visit underscores India’s Neighbourhood First policy and MAHASAGAR vision, positioning New Delhi as a stabilizing force in the Indian Ocean region.

Sources: Moneycontrol, News18, MSN India, Indian Express, Times of India.