Maldivian President Mohamed Muizzu and Indian Prime Minister Narendra Modi have agreed to strengthen bilateral ties. The pro-China Muizzu is making his first state visit to India. He apparently hopes to mend fences with the neighboring economic giant amid the island nation's looming debt crisis.

The two leaders inked a currency swap deal worth 400 million dollars and 30 billion rupees on Monday and agreed to launch talks on a free trade agreement.
They discussed cooperating on infrastructure and signed documents on areas including policing.

The Maldives is located in the middle of a sea-lane in the Indian Ocean. India and China have been competing for influence in the tiny but strategically important country. Muizzu came to power in November on the back of an "India out" election slogan. Since taking office, he has been loudly beating the drum for Beijing. He chose to visit China before India and demanded India pull its troops out of Maldives.

But as relations with New Delhi soured, Maldives saw the number of Indian visitors tumble. Not only the tourism sector, but Maldives' overall economic situation has been worsening amid growing concerns over its debts.