October 7, 2024: In a significant move to bolster bilateral relations, India and the Maldives have signed a currency swap agreement worth USD 400 million, aimed at assisting the Maldives in addressing its foreign exchange reserve challenges. The agreement was formalized during a meeting between Indian Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu at the Hyderabad House on Monday.

As part of the state visit, which is set to last four days, President Muizzu and Prime Minister Modi also inaugurated the Rupay card in the Maldives, a development expected to enhance financial transactions between the two nations. Furthermore, they marked the inauguration of a new runway at the Hanimadhoo International Airport, an infrastructure upgrade anticipated to boost tourism and connectivity.

The discussions highlighted a renewed commitment to strengthen economic ties, particularly following a rocky period in relations over the past year. Modi announced that both countries have agreed to initiate talks on a Free Trade Agreement (FTA), which could pave the way for increased trade and investment opportunities.

In a gesture of goodwill, India handed over 700 social housing units to the Maldives, constructed under the EXIM Bank’s buyer’s credit facilities. This initiative is part of India’s broader efforts to support the socio-economic development of the Maldives.