India and the Maldives finalise a framework to promote local currencies for cross-border trade. External Affairs Minister S. Jaishankar reaffirms India's commitment to the island nation during talks with Maldivian Foreign Minister Abdulla Khaleel in New Delhi.
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India and the Maldives have finalised a framework to promote the use of local currencies for cross-border trade, marking a significant development in bilateral economic cooperation. External Affairs Minister S. Jaishankar, during his meeting with Maldivian Foreign Minister Abdulla Khaleel in New Delhi, reiterated India's unwavering commitment to the island nation, describing it as a vital part of India’s “Neighbourhood First” policy.
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Khaleel, who is on a three-day visit to India, arrived on Thursday to explore avenues for strengthening ties in key sectors such as maritime security, trade, and investment. Addressing the media following the meeting, Jaishankar highlighted the progress in bilateral relations, noting the newly signed framework for the use of local currencies in cross-border transactions.
“I see that the framework to promote the use of local currencies for cross-border transactions has been signed,” Jaishankar remarked. He added, “We have increased our engagement in various sectors, and I do want to emphasise that India has always stood by the Maldives. You are a very concrete expression of our Neighbourhood First policy.”
The Maldives remains one of India’s key maritime neighbours in the strategically significant Indian Ocean Region. Bilateral ties, particularly in areas of defence and security, have witnessed substantial growth in recent years. This upward trajectory was supported by the previous government in Male, fostering stronger collaboration between the two nations.
However, relations faced challenges following the assumption of office by Maldivian President Mohamed Muizzu in November 2023. Known for his pro-China stance, Muizzu demanded the withdrawal of Indian military personnel from the Maldives shortly after his inauguration. Subsequently, Indian military personnel stationed in the Maldives were replaced by civilians to address the concerns raised.
Despite initial tensions, a thaw in relations emerged during Muizzu’s visit to New Delhi in October 2024, where he pledged to enhance bilateral ties with India. This commitment was reflected in the discussions held during Khaleel’s current visit, which aim to consolidate progress in various domains, including maritime security and economic cooperation.
(With inputs from PTI)
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