Prime Minister of India holds bilateral talks with Maldives President in New Delhi

Posted 08 Oct 2024

2 min read

Key Outcomes of Maldives President's Visit to India include

Both sides announcedadoption of vision for comprehensive economic and maritime security partnership which encompasses-
- Development Cooperation: Agreed to support timely completion of Greater Malé Connectivity Project, etc.
- Trade and economic cooperation: Initiate discussions on Bilateral Free Trade Agreement; both sides agreed to operationalize settlement of trade transactions in local currencies to reduce dependency on foreign currencies etc.
- Digital and financial initiatives: Launch of RuPay card in Maldives will enhance ease of payments for Indian tourists visiting Maldives etc.
- Health cooperation: To work towards recognition of Indian pharmacopoeia by Government of Maldives, followed by establishment of India-Maldives Jan Aushadhi Kendras across Maldives etc.
Both sides signed Currency Swap Agreement (CSA) of USD 400 million and INR 30 billion to help Maldives in managing their foreign exchange reserves.
- It was signed under SAARC Currency Swap Framework 2024-27.
- CSA is a contract under which two counterparties agree to exchange two currencies at a set rate and then to re-exchange those currencies at an agreed upon rate at a fixed date in future.
  - Earlier, India had signed CSA with Sri Lanka, Japan etc.

India’s ‘Neighbourhood First’ policy (NFP): Maldives is one of the cornerstones of NFP and SAGAR (Security and Growth for All in the Region) due to its location.
Strategic: Maldives is geographically positioned like a ‘toll gate’ between western Indian Ocean chokepoints (Gulf of Aden and Strait of Hormuz), and eastern Indian Ocean chokepoint of Strait of Malacca.