India has reaffirmed its commitment to the Maldives by extending a $100 million credit line and renewing a crucial trade agreement, signalling strengthened economic cooperation between the two nations.
The announcement came during a high-profile meeting between Indian Prime Minister Narendra Modi and Maldivian President Ibrahim Mohamed Solih. The move is seen as an effort to bolster bilateral relations, despite recent strains over security concerns and regional influence.
Strengthening Economic Ties
The renewed trade pact allows the Maldives to export key goods, including fisheries and agricultural products, to India under preferential terms. This agreement is expected to boost the Maldivian economy, which heavily relies on tourism and exports.
"This credit line will support infrastructure and development projects in the Maldives, further deepening our partnership," stated an Indian government spokesperson.
Diplomatic Balancing Act
While India seeks to maintain its influence in the region, the Maldives has also been strengthening ties with China, raising concerns in New Delhi. The latest financial commitment underscores India's strategic interest in countering Beijing's growing presence in the Indian Ocean.
Analysts suggest that the renewed agreement could help stabilise relations amid ongoing geopolitical tensions in South Asia.
