India and Maldives on Monday sought to reset – boosted by a US$400 million – ₹ 3,000 crore currency swap deal – a relationship fractured by two diplomatic squabbles over the past 12 months, including last year when three Maldivian ministers made critical comments about Prime Minister Narendra Modi.

The deal was announced as Maldives President Mohamed Muizzu made his first State visit to India.

Mr Muizzu arrived in Delhi Sunday evening and, after a day’s rest, was accorded a ceremonial welcome by President Droupadi Murmu and the Prime Minister at Raj Bhavan, after which he paid tribute to Mahatma Gandhi at Rajghat and then went into a huddle with Mr Modi.

At a joint statement after the two leaders met, Mr Modi underlined New Delhi’s position as a “close friend” of the island nation, emphasising his ‘neighbourhood first’ foreign policy that has seen India act as a ‘first responder’ to emergencies affecting Male, including supplying Covid vaccines.