Trade agreements worth billions, lucrative deals, UPI, RuPay, and more; win-win situation for India and Maldives

New Delhi: The government of India has decided to support Maldives by providing financial support worth Rs 30 billion (USD 360 mn) in addition to the USD 400 million bilateral currency swap agreement. Maldives President Mohamed Muizzu on Monday, 07 October 2024 expressed his gratitude to Prime Minister Narendra Modi for this gesture.
“I am thankful for the Indian Government’s decision to provide support in the form of 30 billion Indian Rupees in addition to 400 million US Dollars bilateral currency swap agreement which will be instrumental in addressing the foreign exchange issues we are facing right now,” Muizzu said.
Earlier in the day, PM Modi and President Muizzu held bilateral and delegation-level talks at Hyderabad House in New Delhi.
According to the sources, India will grant a cash-strapped Maldives a USD100 million Treasury bills rollover, and both sides inking a USD 400 million and Rs 3,000 crore currency swap agreement.
Describing the “development partnership” as an important pillar of New Delhi-Male ties, Prime Minister Modi asserted that India has always given preference to the priorities of the people of Maldives.
Prime Minister Modi said, “Development partnership is an important pillar of our (India-Maldives) relations. We have always given preference to the priorities of the people of Maldives. This year, SBI did a rollover of 100 million dollars of the Treasury Bench of Maldives. As per the needs of the Maldives, a 400 million dollars and Rs 3000 crore currency swap agreement was also signed.”
In September, India announced that the State Bank of India (SBI) would subscribe to Maldivian government bonds of USD 50 million. Earlier in May 2024, the SBI had similarly subscribed a USD 50 mn T-bills under the same mechanism on the request of the Government of Maldives.
In addition, Prime Minister Narendra Modi and President Mohamed Muizzu on Monday, 07 October 2024 witnessed the first transaction of RuPay card payments launched in the Maldives today.
The two leaders also virtually inaugurated the runway of Hanimaadhoo International Airport in the island nation.
Prime Minister Narendra Modi said that India and Maldives will be connected through UPI in times to come.
“A few days back, RuPay card was launched in Maldives. In the time to come, India and Maldives will be connected through UPI,” PM Modi said in a joint press statement along with President Muizzu at Hyderabad House in New Delhi on Monday.
He underlined that India is Maldives’ nearest neighbour and close friend.
(With ANI inputs)