GMR project was India's biggest foreign investment project.

India, as a goodwill gesture, extended $25 million standby credit facility to the Maldives for imports from India.

The visiting Maldivian President Abdulla Yameen Abdul Gayoom speaking at an interaction with the Indian industry jointly organised by the three apex chambers – FICCI, CII and Assocham – here on Thursday made it clear that his government was looking development of the airport 'at a cheaper cost'. The expansion programme of the Male International Airport would be undertaken 'by the Maldivian authority'

He alleged that 'GMR could not complete the tenure.'

In 2012, after the ouster President Nasheed, Maldives had cancelled the GMR project and the issue is under arbiration in a court in Singapore. GMR has claimed a compensation of $1.4 billion.

However, President Gayoom said he 'is interested in out-of-the-court settlement of the issue'

The Indian Prime Minister Dr Manmohan Singh at the delegation level talks with President Gayoom raised the GMR issue.

'Increase in Indian investments in Maldives would also contribute to expansion of our economic relations. In this context, I requested President Yameen (Abdulla Yameen Abdul Gayoom) to amicably settle the issue of Male International Airport and address the problems that some of our investors are facing,' said Dr Singh after the delegation level talks.

India and the Maldives discussed security concerns in the Indian Ocean region. 'We have agreed on a number of initiatives to strengthen bilateral defence and security cooperation, including through training, supply of equipment, capacity building, joint patrolling and aerial and maritime surveillance. We are also deepening our trilateral maritime security cooperation with Sri Lanka and look forward to expanding it to other countries in the Indian Ocean. India is ready to provide further assistance and support to Maldives in strengthening our collective ability to address our shared security challenges,' Dr Singh said.

On India-Maldives bilateral trade, Dr Singh said : 'Our bilateral trade is around Rs. 700 crores, and the balance is overwhelmingly in India’s favour. I would like to see a more balanced growth in our bilateral trade, and we will certainly do all we can to encourage the flow of Indian tourists to Maldives..... As part of immediate measures, India is extending a standby credit facility of 25 million U.S. dollars to Maldives for imports from India. We have also agreed to meet the requirements of petroleum products in Maldives and have asked our agencies to work out the best possible terms and arrangements.'

According to the joint statement India reiterated financial support to the Maldives for 'for several cooperation and developmental projects, including the setting up of the Maldives Police Academy, the renovation of the Indira Gandhi Memorial Hospital (IGMH) established by Government of India in Malé and construction of the Composite Training Centre for the Maldives National Defence Force (MNDF).'

'I have come to India at a time of great need for Maldivian people,' the Maldivian President said.

He invited Indian investments in fish processing, tourism, transportation, manufacturing, energy sector, including renewables. He said Maldives intends to be a financial hub and Special Economic Zones (SEZs). He invited Indian entrepreneurs to explore hydrocarbons in his country.

President Gayoom advised the Indian industry saying 'business is built on trust' and he would soon explore the possibilities of a Bilateral Investment Promotion and Protection Agreement.

According to the joint statement issued 'Both sides agreed to consider a Bilateral Investment Promotion and Protection Agreement at the earliest. It was agreed to work towards closer economic cooperation in sectors such as food security, fisheries development, tourism, transportation, information technology, new and renewable energy and communications. Both sides agreed to undertake measures to strengthen links in the banking and financial sectors, including by improving credit and insurance facilities and assistance in the establishment of development finance institutions.'

India and the Maldives agreed to set up a Joint Consultative Commission as per the agreement signed in November 2011 and the first meeting of the Commission will be held in 2014.'Both sides agreed to address the concerns of Indians in Maldives and Maldivians in India regarding consular and visa issues. The President of Maldives welcomed India’s offer to allow visa free entry for medical purposes and also removal of the restriction on re-entry within two months. Both sides agreed to an Exchange of Notes to implement the visa and consular arrangements.' the joint statement said.

It was agreed to enhance connectivity by air and sea between Kochi (India) and Malé (Maldives) and other destinations as available under the Air Services Agreement between Maldives and India. The two leaders also observed that direct flights between Mumbai/Delhi-Malé sectors should be operationalised at the earliest.

India and the Maldives signed a Memorandum of Understanding (MoU) on cooperation in health sector and exchanged letters for extending the MoU on manpower requirements of Indira Gandhi Memorial Hospital in the Maldives. A Memorandum of agreement was signed between the two countries for allotment of plot to the High Commission of Maldives in Delhi. This will be on reciprocal basis.