India and Maldives discuss ways to boost economic recovery


India and the Maldives on Monday discussed ways to boost the Indian Ocean archipelago’s economic recovery amid the Covid-19 pandemic, including improving tourism and accelerating development projects.

The two parties will sign four memorandums of understanding (MoU), including one for India’s $ 100 million grant for the $ 500 million Greater Male Connectivity Project that will link the capital Malé with three islands.

Talks in Malé between visiting Foreign Secretary Harsh Shringla and his Maldivian counterpart Abdul Ghafoor Mohamed focused on economic recovery amid the pandemic. Shringla, who is on a two-day visit, also met with President Ibrahim Solih to review bilateral relations.

The foreign secretaries discussed ways to strengthen and deepen the multi-faceted relationship, according to a statement from the Maldivian Foreign Ministry.

They emphasized “recovery and resilience efforts to slow the onset of the Covid-19 pandemic, including boosting tourism, accelerating the implementation of ongoing development cooperation projects in the Maldives, and the means to raise connectivity and bilateral trade between Maldives and India, “the statement said.

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The four MOUs expected to be signed during Shringla’s visit will cover the Greater Male Connectivity Project, cooperation on sports and youth affairs, the creation of soil and plant testing laboratories, and the establishment of a drug detox facility. .

India has presented a series of measures to boost the recovery of the economy in the Maldives, where the tourism industry has been hit hard by the pandemic. Last month, India provided a $ 250 million soft loan as budget support and announced a $ 500 million package in August to help build the Greater Male Connectivity Project. In addition to the $ 100 million grant, India will provide a $ 400 million credit facility for the project.

The two parties also launched a freight ferry service connecting the ports of Tuticorin and Cochin with Malé in September to reduce costs and the time required to transport goods.

Shringla and his Maldivian counterpart also discussed health and cultural cooperation, human resource development, and consular and community affairs. Ghafoor thanked the Indian government for its “constant support and commitment” to the development of the Maldives.

During his meeting with Solih, Shringla discussed ways to strengthen the bilateral partnership at a time when the two sides are celebrating the 55th anniversary of formal diplomatic ties.

The two sides also discussed ways to improve regional trade and connectivity, economic cooperation, tourism and overcoming the pandemic. Solih thanked the Indian government for agreeing to implement an air bubble between the two countries and said that a growing number of Indian tourists had visited the Maldives since it reopened its borders.

Solih also thanked India for supporting development projects in the Maldives through credit line agreements, including the Greater Male connectivity project, the Gulhifalhu port project, water and sewerage projects on 34 islands and an oncology hospital.

The Maldives is the sixth country Shringla has visited after pandemic-related travel restrictions, the others being Bangladesh, Myanmar, France, Germany and the United Kingdom.

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