Following his five-day visit to India, Maldives President Mohammed Muizzu met with Prime Minister Narendra Modi and the agreement was made public.
The support consists of two currency swap agreements totaling 30 billion rupees ($357 million; £273 million) and $400 million, respectively, that will enable businesses to transact in local currencies as opposed to US dollars.
Following a deterioration in ties in recent months, the president of the Maldives was treated like royalty. A “new chapter” in ties was what Modi dubbed his visit.
He declared that India would always support the development and well-being of the Maldivian people.
The declarations, along with the Indian financial aid package, indicate a major change in Male and Delhi’s relations, which have been tense ever since Muizzu took office in November 2023.
He decided to visit China and Turkey shortly after assuming office; his January visit to the latter country was particularly viewed as a high-profile jab at India, because previous Maldivian leaders had customarily flown to Delhi immediately following their election.
At roughly the same time, three Maldivian officials made disparaging remarks about Modi, which infuriated India.
However, experts claim that the nation’s failing economy has forced its government to repair its relations with India.
