New Delhi, July 24 -- The turnaround in India-Maldives ties is largely due to New Delhi staying the course in the face of provocations from Male and assisting the Indian Ocean archipelago deal with economic problems at a time when other regional players were unwilling to lend a helping hand, people familiar with the matter said. Nearly two years after President Mohamed Muizzu came to power in the Maldives on the back of an "India Out" campaign and adopted policies that sought to move his country closer to China, Prime Minister Narendra Modi will this week become the first foreign head of government to be hosted by the Maldivian leader. Modi will be guest of honour at celebrations on June 26 commemorating the 60th anniversary of the country's independence - marking how the relationship has transformed since 2023. Muizzu's rise had sparked concerns in New Delhi that India could lose one of its closest partners in the Indian Ocean region to geopolitical rivals, especially China, which despatched surveillance vessels that were unable to berth in Sri Lanka, to the Maldives and formalised a defence cooperation agreement that included the provision of training and non-lethal military equipment. Bilateral relations were further soured by Muizzu's demand for the withdrawal of more than 80 Indian military personnel deployed to the Maldives to maintain and operate two helicopters and an aircraft that were largely used for humanitarian and rescue operations. India engaged in intense and extensive consultations on a range of issues, even as it replaced the military personnel with civilian experts last year. The people said on condition of anonymity that a decision was made to stay the course in bilateral engagements, a move reflected in the invitation extended to Muizzu to join a handful of regional leaders at Modi's swearing-in ceremony for his third stint as PM in June last year. "There were no knee-jerk counter moves and the Indian side maintained a quiet and steady approach," one of the people said. Even as the two sides worked to rebuild their relationship last year, India continued its development assistance and budgetary support to the Maldives, which has been one of the main beneficiaries of New Delhi's "Neighbourhood First" policy. India's emergency financial assistance as the Maldives grappled with a balance of payments crisis included two currency swap arrangements worth $400 million and Rs.3,000 crore. The two sides signed 13 memorandums of understanding (MoUs) to expand ferry services across the Maldives, and India maintained its defence, maritime, and capacity-building cooperation. Two-way trade is worth almost $500 million and India investors are active in crucial sectors in the Maldives such as tourism. Both sides are also engaged in discussions on a free trade agreement and an investment treaty. Under the Joint Vision for Comprehensive Economic and Maritime Security Partnership adopted during Muizzu's visit to India last October, India has provided specialised training slots to Maldivian Coast Guard and defence force officers at defence academies....