India Announces $ 1.4 Billion Aid to Help Maldives from Economic Crisis

Indian Prime Minister Narendra Modi after his meeting with Maldivian President Ibrahim Mohamed Solih on 17 December declared a 1.4 billion aid to help the island country from an economic crisis. Leaders of the two countries also signed 4 pacts, including one on visa facilitation.

In his second meeting with Maldivian President in a month, PM Modi emphasized that New Delhi wanted to enhance trade relations with Male, adding that there are ample opportunities for Indian companies to knock in the island country.

Modi said, “We held successful discussion in a pleasant atmosphere. We vowed to reinforce ties. We want greater trade relations with the Maldives as there are rising opportunities for Indian companies in the island nation”.  

This is Solih first abroad trip after taking over as President of Maldives on 17th November. Modi said India has extended dollar 1.4 billion as budget support, currency swap and line of credit for the social and economic development of Maldives.

The move comes after Ex- President Mohamed Nasheed last month said that the new Solih-led government would pull out of the ‘lopsided’ free trade agreement (FTA) with Beijing signed by Yameen.

In a statement intended at pacifying the concerns stemming out of Beijing’s assertive activities in the Indian Ocean, PM Modi said both the countries would work together to further fortify cooperation in the Indian Ocean region. He said “We will not let our nations to be used for activities which can be damaging to each other’s interests”.

Solih on his part said the two countries agreed to strengthen maritime security cooperation in the Indian Ocean region through synchronized patrol and aerial surveillance.