Maldives Signs Agreement With India For Infra Development Of 28 Islands

India's relations with Maldives hit a new low this year when Prime Minister Narendra Modi visited Lakshadweep and Maldivian politicians got irked. This saw a sharp decline in Indian tourists visiting Maldives. Maldivian President Mohamed Muizzu came to power riding on the 'India Out' campaign and has been known for his pro-China inclination. But, the island nation appears to have realized that it needs to take a balanced approach in dealing with New Delhi and Beijing.

Improving Bilateral Ties

External Affairs Minister Jaishankar concluded his visit to the Maldives yesterday. During his time in Male, Jaishankar signed several Memorandums of Understanding (MoUs) focused on capacity building and inaugurated six High Impact Community Development Projects (HICDPs). Among the MoUs exchanged were agreements for the capacity building of an additional 1,000 Maldivian civil servants in India and the introduction of the Unified Payments Interface (UPI) in the Maldives. The six HICDPs, supported by Indian grant assistance, cover areas such as mental health, special education, speech therapy, and street lighting, and were jointly inaugurated.

Concluded a productive visit to Maldives!

Living up to the message of our ties: ‘Imagined by Maldives, Delivered by India’.

Some highlights: pic.twitter.com/RmdM3WLSoj

— Dr. S. Jaishankar (@DrSJaishankar) August 12, 2024

28 Islands To India Deal

EAM Jaishankar and the Foreign Minister jointly inaugurated, in the presence of President Muizzu, India's Line of Credit (LoC)-assisted project of water and sewerage network in 28 islands of Maldives. Thus, India, as true friend, will be assisting Maldives in carrying out development work in these 28 islands. 

बांग्लादेश छोड़िए, मालदीव के 28 द्वीपों में घुसा भारत, हिल गई दुनिया!#Maldives #Bangladesh #India pic.twitter.com/32MUbC3ddh

— Zee News (@ZeeNews) August 12, 2024

Budget Assistance To Maldives

The Union Budget 2024 presented on July 23 revealed a significant 48 per cent reduction in aid to this island nation for the 2024-25 fiscal year compared to the previous year. The current fiscal allocation designates Rs 400 crore as "grants" to the Maldives, a substantial decrease from the Rs 770 crore provided last year. This allocation is also Rs 200 crore less than what was proposed in the interim budget presented in February 2024.

Muizzu Hails India

President Mohamed Muizzu appreciated India's continued developmental assistance to the Maldives and reaffirmed his commitment to deepening the India-Maldives relationship further. During Jaishankar's visit, the Maldivian side appreciated India's support for the overall development of Maldives, including social, infrastructural, and financial sectors.