Asserting that Maldives holds an important place in India's 'Neighbourhood First' policy and SAGAR vision, Prime Minister Narendra Modi said on Monday that both countries have adopted a comprehensive, economic and maritime security partnership vision to give strategic direction to mutual cooperation.

The two neighbouring countries have also decided to discuss the Free Trade Agreement and will also work on settling trades in local currency, Prime Minister Modi revealed while addressing the media jointly with Maldives President Mohamed Muizzu at the Hyderabad House on Monday.

"India has always played the role of 'First Responder' for Maldives. Be it meeting the needs of essential commodities for the people of Maldives, providing drinking water during a natural disaster, or providing vaccines during Covid, India has always fulfilled its responsibility as a neighbour, said PM Modi.

Citing the centuries-old ties between the two countries, the Prime Minister maintained that India is Maldives' closest neighbour and the closest friend.

A number of agreements were signed as both leaders held comprehensive discussions to further deepen ties on a range of areas including development partnership, energy, trade, financial linkages and defence cooperation.

"Today, we have inaugurated the redeveloped Hanimaadhoo Airport. Now, the Greater Male Connectivity Project will also be expedited. Support will also be provided for the development of a new commercial port in Thilafushi. Today, more than 700 social housing units built with Indian assistance have also been handed over... Work will be done to connect India and Maldives with UPI as well," said PM Modi.

Prime Minister Modi mentioned that together, both countries will work to build a "brighter future".

Both countries announced the adoption of India-Maldives vision for Comprehensive Economic and Maritime Security Partnership. The refit of Maldives Coast Guard Ship Huravee will also be undertaken by the Indian government on gratis basis.

Besides the launch of RuPay Card in Maldives, the new runway of Hanimaadhoo International Airport (HIA) was also inaugurated by the two leaders. Together, they also handed over 700 social housing units built under EXIM Bank's Buyers' Credit facilities.

Earlier, Mohamed Muizzu and First Lady Sajidha Mohamed were accorded a ceremonial welcome at the Rashtrapati Bhavan.

Upon arrival, a 21-gun salute was conferred on Muizzu and he also inspected the Guard of Honour at the ceremony in the presence of President Droupadi Murmu and Prime Minister Modi.

After the welcoming ceremony, the visiting President visited Raj Ghat to pay tribute to Mahatma Gandhi.

He is scheduled to meet Vice President Jagdeep Dhankhar and President Murmu later on Monday afternoon.

The Maldives President will be in Agra on Tuesday and also visit Mumbai and Bengaluru for business engagements.