'Talks on India-Maldives Free Trade Agreement have started': PM Modi

Prime Minister Narendra Modi is on a two-day visit to Maldives. (Image: X/@narendramodi)

Prime Minister Narendra Modi, who is on an official two-day visit to the Maldives, on Friday said that the two countries have launched negotiations on India-Maldives Free Trade Agreement (IMFTA).

After bilateral meeting was held between the two countries, India has decided to extend the Line of Credit (LoC) of Rs 4,850 crore to Maldives.

The outcome of PM Modi's state visit also includes the handing over of 3,300 social housing units in Hulhumale under India’s Buyers’ Credit facilities and inauguration of the Roads and Drainage system project in Addu city.

After the meeting, PM Modi said, “Maldives is just not a neighbour but a co-traveller. Our relations are touching new heights. Be it a disaster or a pandemic, India has always stood by as the ‘First Responder’. The Maldives holds an important place in both India’s ‘Neighbourhood First’ Policy and the MAHASAGAR vision.”

PM Modi made the remarks after holding wide-ranging talks with Maldivian President Mohamed Muizzu, focusing on consolidating cooperation in areas of trade, defence and infrastructure.

PM Modi’s visit to the Maldives is significant, as it marks his first since bilateral ties were strained by the “India Out” campaign led by some Maldivian leaders and President Muizzu’s pro-China tilt.

Notably, President Muizzu invited PM Modi to attend the 60th National Day celebrations as the chief guest. He is also visiting on the 60th anniversary of India-Maldives diplomatic relations.

This visit is not only important to strengthen bilateral cooperation, but it also reaffirms India’s commitment to its ‘Neighbourhood First’ policy in the Indian Ocean region.

(With inputs from agencies)