In a major development, Maldives has handed over 28 islands to India for water and sewerage projects, marking a significant step in India’s strategic plan for overseas port development.

During the visit, India’s External Affairs Minister Dr. S Jaishankar met with Maldivian President Dr. Mohamed Muizzu and inaugurated India’s Line of Credit (LoC)-assisted project of water and sewerage network in 28 islands of Maldives, during the former’s visit to the country.

The development comes at a time when the ties between the two nations had turned sour. Earlier this year, relations between India and the Maldives reached a low point after Prime Minister Narendra Modi’s visit to Lakshadweep, which led to derogatory comments from a Maldivian leader and subsequent tensions. Mohamed Muizzu, who campaigned on an ‘India out’ platform with a pro-China stance, was elected President of the Maldives.

India’s move to extend financial support for development of water projects in other countries is likened to China’s “string of pearls” initiative whereby the latter was building a network of commercial and military bases and ports in many countries. India is also investing in key overseas ports in Iran, Myanmar, and Sri Lanka.

EAM held comprehensive discussions with his Maldivian counterpart, Foreign Minister Moosa Zameer, exploring a wide range of bilateral issues. In talks with the Maldivian Defense Minister, both sides reiterated their commitment to enhancing their defence and security partnership.

Jaishankar also met with key economic leaders, including the Ministers of Finance and Economic Development & Trade, and the Governor of the Maldives Monetary Authority, focusing on boosting trade and economic ties. Maldivian officials acknowledged India’s support across various sectors, such as social, infrastructural, and financial development. EAM also engaged with a delegation from the Maldivian Democratic Party (MDP), led by President Abdulla Shahid.

In Male, several Memorandums of Understanding (MoUs) were signed, including agreements on training an additional 1,000 Maldivian civil servants in India and introducing the Unified Payments Interface (UPI) in the Maldives.