India has been investing heavily in infrastructure projects in Maldives. “Till now India has extended $2.8 billion worth of financial aid to Maldives, which includes Letters of Credit (LOC) and currency exchange. Despite the pandemic, there was 31 per cent increase in trade between India and Maldives in 2021 ($330 million) compared to 2020,” said Munu Munawar, Indian High Commissioner to Male.
Modi and Solih jointly launched the Greater Male Connectivity Project — the largest infrastructure project in Maldives. A 6.74-km-long bridge, connecting Male to Villingli, Gulhifahlu and Thilahfushi, will be built at a cost of $500. India is funding the project.
Besides announcing an LOC worth $100 to ensure that all ongoing projects complete on time, Modi reviewed construction of 4,000 social housing units in Greater Male. The units are funded under Exim Bank of India’s buyers credit finance of $227 million.
“India-Maldives partnership is not only working in the interest of the citizens of both countries but is also becoming a source of peace, stability and prosperity for the region. India has been and will continue to be the first responder in any need or crisis in Maldives,” the PM said.
