India pledges $565 million to Maldives to boost defence, infrastructure

AFP | Male

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India’s Prime Minister Narendra Modi offered $565 million to the Maldives yesterday to bolster its defence forces and infrastructure in the small, yet strategically located, neighbour.

On his first official visit to the Indian Ocean archipelago since winning a third term last year, Modi stressed that India will remain the “first responder” for the Maldives, which has a population of around 525,000 people.

“India will continue to support the Maldives in strengthening its defence capabilities,” Modi said.

“Peace, stability, and prosperity in the Indian Ocean region are our shared goals.”

Muizzu met with Modi twice last year in New Delhi, and both leaders vowed to begin a “new chapter” in bilateral ties.

Modi yesterday unveiled a $565 million credit line for the Maldives, which is facing a severe foreign exchange shortage despite its highly successful upmarket tourism industry.

He also inaugurated several infrastructure projects, including roads funded by India along with a 4,000-unit housing scheme.

Muizzu said the credit line from India would be used to strengthen the Maldives’ security forces, improve healthcare, housing, and education.

“India’s continued assistance to the Maldives through the export of essential commodities is a key facet of our bilateral cooperation,” Muizzu said.