India's 'Neighborhood First' Policy: A Strategic Reaffirmation through the Maldives Visit
UPSC Relevance
Prelims: International Relations (India and its neighborhood, Neighborhood First Policy, SAGAR Vision), Indian Economy (Line of Credit, Currency Swap).
Mains:
GS Paper 2: India and its neighborhood- relations; Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Key Highlights from the News
Prime Minister Narendra Modi's visit to the Maldives, at the invitation of President Mohamed Muizzu, signals a normalization of relations between the two countries.
Initially, relations with the Muizzu government, which came to power in 2023 with the "India Out" campaign, were strained.
During this visit, India announced a new line of credit of $565 million to the Maldives. The annual repayment burden of previous loans was also reduced by 40%.
Both countries decided to begin negotiations for a Free Trade Agreement and sign a rupee-rufiyaa national currency payments agreement.
This visit reaffirms the importance of the “Neighbourhood First” policy at a time when India faces global challenges.
The article also highlights the need to improve relations with other neighboring countries.
The article concludes that supporting the economic needs of neighboring countries and assisting their development projects is a strategic necessity for India.
COMMENTS