His remarks came during a ceremony at the President’s Office, where he marked the completion of water supply and sewerage projects on 28 islands, funded through India's Line of Credit Facility via the EXIM Bank of India.

The Memorandum of Understanding was signed on Friday during Jaishankar's three-day official visit to the Maldives.

Upon returning from the trip, Muizzu remarked that the visit was a "success" not just for the Maldives but for the region as well, and hoped for increased prosperity for Maldivians.

India is pursuing a Free Trade Agreement (FTA) with the Maldives, aiming to enhance trade relations. Efforts for the FTA come amid a diplomatic spat since President Muizzu's pro-China stance. Despite historical trade agreements, including an FTA with China, the Maldives is exploring closer ties with India.

Amid turbulent bilateral ties, the Maldives will soon launch India’s RuPay service, which Economic Development Minister Mohamed Saeed said will "bolster the Maldivian Rufiyaa." Saeed also announced that both India and China have agreed to use local currencies in bilateral trade.

Moosa conveyed his appreciation to EAM @DrSJaishankar and the Indian government for extending crucial financial assistance to the Maldives by rolling over a USD 50 million Treasury Bill. He emphasized that this gesture highlighted the enduring friendship between Maldives and India.

The election results are being viewed as fertile ground that will further jeopardise the island nation's diplomatic tensions with India and its gravitation towards China. It’s been an election that is crucial for not just the ruling President Muizzu, who has made his pro-Beijing stand quite clear since coming to power last September, but also other key players in the Indian Ocean.

The announcement comes on the heels of India's decision in July 2023 to permit the Maldives, along with 21 other nations, to open Special Rupee Vostro Accounts (SRVAs). This measure was aimed at promoting bilateral trade in local currencies and facilitating payments for goods imported from India in Maldivian Rufiyaa.

In response to the expression of gratitude from Maldivian minister Moosa Zameer towards India for renewing the quota to import essential commodities for the fiscal years 2024-2025, Union Minister S Jaishankar reiterated India's steadfast commitment to its policies of 'neighbourhood first' and SAGAR.

This development comes against the backdrop of strained relations between India and the Maldives since November of the previous year. The tensions escalated following demands by Maldivian President Mohamed Muizzu, known for his pro-China stance, for the repatriation of Indian military personnel.

The move, announced by the Directorate General of Foreign Trade (DGFT), allows for the export of items including eggs, potatoes, onions, rice, wheat flour, sugar, and dal under the bilateral trade agreement between the two countries.

The Directorate General of Foreign Trade (DGFT) in a notification said these exports have been permitted to Maldives under bilateral trade agreement between the countries during 2024-25.