New Delhi, Jan 3 (PTI) The Maldives is a "very concrete" expression of India's neighbourhood first policy, External Affairs Minister S Jaishankar said, pledging New Delhi's support the Indian Ocean archipelago as its economy is reeling under some stress.

In his opening remarks at the meeting with Maldivian Foreign Minister Abdulla Khaleel, Jaishankar noted finalisation of a framework to promote the use of local currencies for cross border trade between India and Maldives and listed New Delhi's financial assistance to Male to help it deal with economic issues.

Both sides signed a Memorandum of Understanding for implementation of high impact community development projects under phase-III in Maldives through grant assistance from India.

In his comments, Khaleel reaffirmed President Mohamed Muizzu's firm commitment to work closely with New Delhi in realising the joint vision for India-Maldives comprehensive economic and maritime security partnership.

Khaleel arrived here on Thursday on a three-day visit to explore ways to bolster bilateral ties in several key areas including trade and investment.

The Maldives has been reeling under some financial stress.

"I see that the framework to promote the use of local currencies for cross border transactions 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 Maldives. For us, you are a very concrete expression of our neighbourhood first policy," he added.

Jaishankar noted the assistance extended by India last year to help the Maldives deal with a debt crisis. This included the resubscription of treasury bills and currency swap lines of USD 400 million and 3,000 crore rupees.

"We have also facilitated the export of essential commodities to Maldives. That has been very much a tradition in our relationship," he said.

"We certainly hope that our relationship has helped you to navigate through these difficult times," he added.

The Maldives is one of India's key maritime neighbours in the Indian Ocean Region and the overall bilateral ties including in areas of defence and security witnessed an upward trajectory under the previous government in Male.

The Ministry of External Affairs (MEA) said Jaishankar and Khaleel took stock of progress made on the understandings reached during the visit of President Muizzu to India in October.

"External Affairs Minister S Jaishankar reaffirmed the importance India attaches to its bilateral ties with Maldives and assured continued support to Maldives, under India's 'Neighbourhood First' policy and Vision SAGAR," it said.

SAGAR stands for Security and Growth for All in the Region.

The ministry said Khaleel, on his part, appreciated the timely emergency financial assistance extended by India to Maldives in times of need, reflecting India's role as the "First Responder" of Maldives.

"Foreign Minister Khaleel reaffirmed President Muizzu's and the Government of Maldives' firm commitment to work closely with the Government of India in realizing the Joint Vision for India-Maldives Comprehensive Economic and Maritime Security Partnership," the MEA said in a statement.

The visit of Khaleel provided an opportunity to further deepen the bilateral ties for the mutual benefit of two countries and the Indian Ocean Region, it said.

The ties between India and the Maldives came under severe strain after Muizzu, known for his pro-China leanings, took charge of the top office in November 2023.

Within hours of his oath, he had demanded the withdrawal of Indian military personnel from his country. Subsequently, the Indian military personnel were replaced by civilians.

However, there was a thaw in the relations as Muizzu vowed to boost the bilateral ties with India during his visit to Delhi in October. PTI MPB ZMN

Local currency trade framework supports Maldives' economic stability and deepens an India Maldives economic and maritime partnership. India pledged continued economic support to the Maldives, finalised a framework to promote use of local currencies for cross border trade, and signed an MoU for grant funded community development projects; India reiterated prior financial stabilisation measures and facilitation of essential commodity exports while the Maldives committed to deepen the Joint Vision for a Comprehensive Economic and Maritime Security Partnership under Vision SAGAR.