Pleased to call on President @MMuizzu today at the start of his State Visit to India.
Appreciate his commitment to enhance 🇮🇳 🇲🇻 relationship. Confident that his talks with PM @narendramodi tomorrow will give a new impetus to our friendly ties. pic.twitter.com/UwDjnCZ0t6— Dr. S. Jaishankar (@DrSJaishankar) October 6, 2024
Schedule of Program on Arrival and Meeting
- About Visit: The President of the Maldives, Mohamed Muizzu, landed in Delhi on 6th October 2024, for a four-day state visit.
- Bilateral Meeting: Would meet Indian PM Narendra Modi on 7th October 2024, at Hyderabad House after the guard of honour at Rashtrapati Bhawan.
- Core Issue: Economic crisis of the Maldives, with debt repayment issues and foreign reserves decline as central topics.
Economic Request of Muizzu
- Debt Relief Appeal: Muizzu is likely to seek debt relief and a currency swap agreement with India.
- Earlier Statement: Speaking to BBC, Muizzu said he was hopeful that India, being a partner in development, might be able to provide some alternatives to mitigate the debt burden on the Maldives.
- Short-Term Fiscal Stress: Maldives has to pay $25 million on October 8, 2024, on its Sukuk (Islamic bonds), and $114 million is outstanding this year.
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Financial Background and Indian Stake
- SBI Bonds Subscription: State Bank of India subscribed to $50 million of the Maldivian government bonds in September 2024 to avert an outright financial crisis.
- Debt Crisis Scenario: Maldives' debt to GDP ratio is at 110%. Foreign reserves plummeted to $440 million.
- Rating agencies: Like Moody's and Fitch downgrade its ratings recently citing the rising debt level.
Friendly Ties Restored After The War
- The antecedent Tensions: Muizzu's election campaign was encompassed by an "India Out" stance to leave Indian military personnel, and it resulted in lower Indian tourism and diplomatic frictions.
- Restoration Efforts: After there were bilateral ministerial talks and the withdrawal of Indian troops, Muizzu asked ministers targeting PM Modi for being placed on compulsory leaves that reflected the new diplomatic relations.
Later Diplomatic Engagements
- High-Level Meets: On 6 October 2024, External Affairs Minister S. Jaishankar and other officials of India met with Muizzu to discuss the bilateral talks
- Future Cooperation: Outcome of the talks will be MoUs on Indian infrastructure projects, security cooperation, and further improvement of bilateral ties.
- Social Media Statements: Both the nations' foreign ministers through their social media statements hailed the future cooperation between India and the Maldives.
Itinerary for the State Visit
Extended Visit: Agra, Mumbai, and Bengaluru in next few days for meetings with Muizzu and his delegation following meetings in Delhi.
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Muizzu's India Visit Marks a Key Moment in Economic and Diplomatic Cooperation
It is at a critical time that the President of the Maldives, Mohamed Muizzu, visits India. The country is suffering from an economic crisis, high external debt, and foreign reserves being eroded rapidly. Though India has advanced steps to support the neighbour by subscribing to Maldivian bonds, the discussion to be held in the near future will prove to be the very moment that decides the future prospects of bilateral economic ties.
Muizzu's attempt to seek further assistance from India presents as a sensible reaction for the redress of his nation's fiscal imbalances but falls within a shadow of his earlier "India Out" posture that he brought immense tension at the diplomatic arena. On this day, this visit underscores cooperation and flexibility in international affairs as both seek to stabilize the economy of the Maldives and improve regional relations. Whether it will be enough to avoid a larger economic spill is yet to be seen, but the warming of the relations of the two is quite positive and bodes well for further cooperation.
Inputs by Agencies
Image Source: Multiple Agencies
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