Maldives President Mohamed Muizzu expressed gratitude to India for its assistance in easing the island nation's debt repayment and expressed hope for stronger bilateral relations, including the possibility of a free trade agreement with New Delhi. Speaking at the official Independence Day function in the Maldives on Friday, President Muizzu highlighted eight months of 'diplomatic success' under his administration, according to the Maldives President Office.

Muizzu thanked both India and China for their support in helping the Maldives manage its debt, which has contributed to the country's economic sovereignty. He emphasized the need to address the local shortage of US dollars and mentioned ongoing negotiations with both New Delhi and Beijing for currency swap agreements.

Additionally, the Maldives President announced that his government is negotiating a Free Trade Agreement (FTA) with the United Kingdom and expressed optimism about reaching a similar agreement with India.

This reconciliatory approach follows a period of strained relations between the Maldives and India. Last month, President Muizzu attended the oath ceremony of Prime Minister Narendra Modi, marking Modi's third consecutive term. Earlier this year, Muizzu sought debt relief measures for the hefty loans accumulated by the Maldives over previous administrations, asserting that India remains the Maldives' "closest ally."

By the end of last year, the Maldives owed India 6.2 billion Maldivian Rufiyaa, according to The Edition. The International Monetary Fund (IMF) had previously warned that the Maldives faced a high risk of debt distress without significant policy changes.

Despite President Muizzu's administration previously displaying 'anti-India' rhetoric, including campaigning on an 'India Out' platform, recent actions suggest a shift towards improving bilateral relations. His government initially requested the withdrawal of Indian troops stationed in the Maldives, a move completed in May this year. Following the troop withdrawal, Maldives Defence Minister Ghassan Maumoon acknowledged the country's capability to operate the aircraft donated by India.

Tensions had flared after derogatory comments by three Maldivian deputy ministers about Prime Minister Narendra Modi, which led to their suspension. These incidents contributed to a 33 percent drop in Indian tourist visits to the Maldives earlier this year, according to data from the Maldives Tourism Ministry.

Despite past frictions, President Muizzu's recent statements and actions indicate a desire to strengthen ties with India and collaborate on economic and strategic fronts.