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In a reset of ties months after a major fallout, India and Maldives on Friday inked some crucial pacts, aiming to deepen the bilateral relations between the two countries. Among the landmark decisions announced today is the launch of negotiations for a Free Trade Agreement (FTA) between India and Maldives, besides the pact for extending Rs 4,850 crore Line of Credit.

These landmark decisions were announced during a joint press conference by Prime Minister Narendra Modi and Maldives President Mohamed Muizzu after their meeting in the capital city of Male, during which both leaders reviewed the entire spectrum of India-Maldives relations and reaffirmed their commitment to further strengthening bilateral ties.

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The two leaders discussed cooperation in the fields of development partnership, capacity building, health, infrastructure, digital economy, aquaculture, climate change and renewable energy and also called for closer collaboration to enhance peace, progress and prosperity of the Indian Ocean region.

The two countries announced to have agreed on Terms of Reference of the India-Maldives Free Trade Agreement (FTA) and also signed several Memorandums of Understanding (MoU), including in the fields of fisheries and aquaculture. The two nations also signed an agreement for a Line of Credit (LoC) of Rs 4,850 crores to Maldives besides an amendatory agreement on reducing annual debt repayment obligations of Maldives on Government of India-funded LoCs.

The two nations also signed a MoU on cooperation in the field of sharing successful digital solutions implemented at population scale for Digital Transformation between the Ministry of Electronics and IT of India and Ministry of Homeland Security and Technology of Maldives.

Both nations also signed an MoU on recognition of Indian Pharmacopoeia (IP) by Maldives. Network-to-Network Agreement between India's NPCI International Payment Limited (NIPL) and Maldives Monetary Authority (MMA) on UPI in Maldives was also signed during PM Modi's visit to Maldives.

Key Announcements During PM Modi's Maldives Visit:

- Launch of India-Maldives Free Trade Agreement (IMFTA) negotiations

- Extension of Line of Credit (LoC) of Rs 4,850 crores to Maldives

- Reduction of annual debt repayment obligations of Maldives on Gol-funded LoCs

- Joint issuance of commemorative stamp on 60th anniversary of establishment of India-Maldives diplomatic relations

- Handing over of 3,300 social housing units in Hulhumale under India's Buyers' Credit facilities

- Inauguration of Roads and Drainage system project in Addu city

- Inauguration of six High Impact Community Development Projects in Maldives

- Handing-over of 72 vehicles and other equipment

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'India-Maldives Frienship Paramount,' Says PM Modi

Hailing the reboot of ties between India and Maldives, Prime Minister Narendra Modi said that India has always been a close friend of the Maldives, and for India, it has always been "friendship first." PM Modi said that the Maldives holds an important place in both India's Neighbourhood First policy and Ocean Vision.

"India is the closest neighbour of the Maldives. The Maldives holds an important place in both India's Neighbourhood First policy and Ocean Vision. India is also proud to be the most trusted friend of the Maldives. Whether it is a disaster or a pandemic, India has always stood by it as the first responder. Whether it's about providing essential commodities or handling the economy after Covid. India has always worked together with the Maldives. For us, it is always friendship first," he said.

"On behalf of all Indians, I congratulate and convey my heartiest greetings to the President and the people of Maldives on the historic anniversary of 60 years of Independence. I express my heartfelt gratitude to the President for the invitation on this historic occasion as a Guest of Honour. This year, India and Maldives are also celebrating 60 years of their diplomatic relations. But the roots of our relationship are older than history and as deep as the sea," he said.

Maldivian President Mohamed Muizzu, while speaking on the occasion, said that they discussed ways to expand this vital sector through enhanced cooperation and connectivity, including the commencement of direct flights to further enhance this connectivity.

"Our flagship greater Male connectivity project, once completed, will stand as a lasting symbol of the enduring partnership between India and Maldives. I express my sincere appreciation to India for the provision of 72 vehicles to the Maldives National Defence Force. The handover of the remaining 3,300 housing units from the 4,000 housing units project marks a major step forward in my government's policy in addressing housing needs across the Maldives," he said.

"I thank the Government of India for its role as the Maldives principal partner in the health sector. India remains a key source market for Maldivian tourism. We discussed ways to expand this vital sector through enhanced cooperation and connectivity, including the commencement of direct flights to further enhance this connectivity," Muizzu added.


(With Agencies Inputs)

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