India and Maldives agree USD 400 million, INR 30 billion currency swap for economic partnership

It commits both nations to deepen cooperation in development, trade, digital infrastructure, energy, health, and defence to enhance stability in the Indian Ocean Region.

Who it concerns: The agreement involves the Government of India and the Government of the Maldives. It affects sectors including ports, airports, housing, healthcare, agriculture, fisheries, energy, defence, and digital services. Specific entities mentioned include the State Bank of India (SBI), the Maldives National Defence Force (MNDF), the Maldives Police Services (MPS), and the Maldivian Ministry of Defence.

What was agreed

• India extended USD 100 million in T-bills (rolled over for one year) and agreed to a bilateral currency swap of USD 400 million and INR 30 billion to support Maldives' financial stability.
• Commitment to complete the Greater Malé Connectivity Project (GMCP) and conduct a feasibility study for connecting Thilafushi and Giraavaru islands.
• Agreement to develop a commercial port at Thilafushi and explore transshipment facilities at Ihavandhippolhu and Gaadhoo islands.
• Initiation of discussions for a Bilateral Free Trade Agreement and operationalization of local currency settlement for trade transactions.
• Launch of India's Unified Payments Interface (UPI) and RuPay card services in the Maldives.
• Establishment of a framework for renewable energy cooperation, including a feasibility study for the One Sun One World One Grid initiative.
• Provision of defence platforms, radar systems, and financial assistance to upgrade MNDF infrastructure, including completion of the Ekatha harbour project at Uthuru Thila Falhu.
• Establishment of a High-Level Core Group to oversee implementation of the partnership.

Also in the document

• A specific financial commitment of USD 400 million and INR 30 billion as a bilateral currency swap to address Maldives' financial challenges.
• A prior emergency financial assistance of USD 100 million via SBI T-bills was rolled over for an additional year.
• The agreement explicitly names the 'One Sun One World One Grid' initiative for potential Maldivian participation.
• A new framework for 'Comprehensive Economic and Maritime Security Partnership' was established to replace previous cooperation structures.