Prime Minister Narendra Modi on Tuesday said that India will provide an additional $100 million line of credit to the Maldives to facilitate the timely completion of the ongoing projects.

"We have decided to extend an additional line of credit worth $100 million dollars so that all projects may be completed on time," Modi, who held a meeting with Maldives President Ibrahim Mohamed Solih in New Delhi, said at a joint press conference. Solih tweeted saying that “it was a pleasure to meet PM @narendramodi during my ongoing official visit to India.”

“A good friend of the Maldives, the Prime Minister and I had extensive and fruitful discussions on further strengthening Maldives- India relations,” he said.

PM also said, "We reviewed projects for the construction of 4000 social housing units in Greater Male. We will additionally provide financial support for 2000 social housing units.

Speaking about the security needs in the Indian Ocean region, PM Modi said: "The threat of transnational crime, terrorism and drug trafficking is serious in the Indian Ocean region. That's why coordination between India and the Maldives in the field of defence and security is vital for the peace and stability of the entire region."

Maldives is a key neighbour of India in the Indian Ocean Region and occupies a special place in the country's Neighbourhood First Policy.

Last year, India and Maldives signed a contract to develop the Greater Male Connectivity project (GMCP), the largest infrastructure exercise in the country with a $100 million grant from New Delhi along with a line of credit worth $400 million, in the country. This is also one of India’s biggest by India in the neighbourhood. The project involves construction of a 6.74 km long bridge and causeway link that will connect Male with other adjoining islands.

India is also one of the largest tourist sources for the archipelago. According to Maldives’ Ministry of Tourism, more than 291,700 Indian tourists visited the archipelago in 2021 making up– 22 per cent market share followed by Russian tourists. As many as 222,422 tourists from Russia travelled to Maldives in 2021.

Also read: Maldives President Solih’s visit to India expected to boost economic ties