Ties in region back in focus with PM’s visit to Maldives, Pg10

Key Highlights:

• PM Modi will visit Male on July 25–26 to attend the 60th Independence Day celebrations of the Maldives.
• He will hold bilateral talks with President Mohamed Muizzu to deepen cooperation.
• Key agenda includes expanding digital payments (UPI) and increasing tourism linkages.
• India had earlier agreed to replace its military personnel in Maldives with civilian staff amid political tensions.
• India's budgetary outlay for Maldives rose to ₹600 crore, and a currency swap facility was extended.
• Nepal’s PM K.P. Sharma Oli is also expected to visit India soon, in his first trip since taking office in 2024.
• Oli condemned the Pahalgam terror attack and India assisted Nepalese nationals during the Iran-Israel crisis.

Detailed Insights:

• The Maldives visit will be PM Modi’s first since Mohamed Muizzu took office in November 2023.
• Earlier tensions arose due to Muizzu’s backing of the “India Out” campaign, aimed at reducing Indian influence.
• India tactfully managed the diplomatic strain by withdrawing military personnel and deploying civilian replacements.
• India has extended developmental aid and financial support to Maldives amid its debt crisis.
• Maldives Foreign Minister Abdulla Khaleel had formally invited Modi during his visit in May 2025.
• Nepal’s PM Oli’s visit to India is seen as a balancing act after his 2024 visit to China, highlighting India’s strategic diplomacy.
• India’s prompt assistance to Nepalese citizens during regional crises demonstrates its neighbourhood-first policy.

Key Concepts Involved:

• UPI (Unified Payments Interface): India’s real-time digital payment system, now being internationalised for bilateral trade and tourism.
• Currency Swap Facility: An agreement to exchange currencies, helping countries manage foreign exchange liquidity and debt crises.