India and the Maldives have agreed on a plan to encourage the use of local currencies for trade between the two countries. External Affairs Minister S. Jaishankar emphasised that India has always supported the island nation.

“I see that the framework to promote the use of local currencies for cross border transaction has been signed,” Jaishankar said. “We have increased our engagement in various sectors and I do want to say that India has always stood by the Maldives. You are a very concrete expression of our neighbourhood's first policy,” he added. Jaishankar made these comments during a meeting with his counterpart from the Maldives, Abdulla Khaleel, in Delhi.

During his three-day visit, Khaleel landed in New Delhi on January 2 to discuss ways to strengthen bilateral cooperation in several areas, such as trade, investment, and maritime security. During the previous Male government, the Maldives, one of India's most important maritime neighbours in the Indian Ocean region, saw an increase in bilateral cooperation overall, especially in the fields of security and defence. The relationship between India and the Maldives became tense after Muizzu, who has pro-China views, became the president in November 2023. Shortly after taking office, he asked for the Indian military personnel to leave the country. As a result, the Indian military was replaced with civilians.

However, the situation improved when Muizzu promised to strengthen ties with India during his visit to Delhi in October. On January 3, the Maldivian foreign minister will meet with India's foreign minister, Dr. S. Jaishankar, to discuss various aspects of the relationship between India and the Maldives. “Working towards India-Maldives joint vision of a ‘Comprehensive Economic & Maritime Security Partnership’. Warm welcome to FM @abkhaleel of Maldives on his first official visit to India,” External Affairs Ministry spokesperson Randhir Jaiswal said on X.  This visit is part of ongoing high-level interactions between the two sides and offers a chance to strengthen the bilateral relationship, benefiting both countries and the Indian Ocean Region.