• Source:JND
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India and Maldives, on Monday, signed a multi-million dollar currency swap agreement, seen as an attempt to repair the diplomatic relationship, strained by two diplomatic blunders by Male involving its party in power. In line with India's cordial policies towards the archipelago nation, PM Modi inked a USD 400 million - Rs 3,000 crore currency swap deal to help it overcome foreign exchange reserve issues.

The deal came as President Mohmed Muizzu, who earlier ordered Indian troops to move out from the country, met Prime Minister Modi in Delhi. Both leaders also issued a joint statement, announcing that they would work together in advancing the developmental partnership, as per the needs and requirements of the island nation.

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"Taking into account the progress of ongoing developmental partnership projects, which have already brought tangible benefits to the people of Maldives, the two sides decided: To work together in advancing the developmental partnership, as per needs and requirements of Maldives, across areas, including ports, airports, housing, hospitals, roads networks, sports facilities, schools and water and sewerage," the statement read.

The latest efforts to patch the diplomatic wear and tear followed a steep decline in the friendliness of the two countries. Muizzu, whose party came to power in Male riding the 'India Out' slogan, made two back-to-back diplomatic squabbles. Firstly, three ministers of the Muizzu cabinet made provoking comments on the Indian Prime Minister and then the pro-China President ordered Indian troops, stationed in the island nation to train its forces, were asked to leave the country.

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Despite the hiccups in the relationships, India repeatedly stepped up for Male with a USD 50 million T-bill subscription being the latest step in its show of support for the Maldives.

On Monday, the two nations also announced a deal to develop a state-of-the-art commercial port at Thilafushi island to de-congest the Male port and provide enhanced cargo handling capacity at Thilafushi.

The two leaders also agreed to explore collaboration for the development of trans-shipment facilities and bunkering services contributing towards the Maldives Economic Gateway project at the Ihavandhippolhu and Gaadhoo islands of Maldives, news agency ANI reported.

(With ANI Inputs)