Male: Prime Minister Narendra Modi on Friday reaffirmed India’s commitment to strengthening ties with the Maldives, announcing a ₹4,850 crore (approx. $600 million) line of credit during his visit to Male — the first by a foreign leader under President Mohamed Muizzu’s term.
Calling the Maldives “India’s most trusted friend,” PM Modi said the two nations are working towards finalising a bilateral investment treaty, with negotiations for a free trade agreement already underway. He highlighted the Maldives’ strategic place in India’s “Neighbourhood First” policy and its MAHASAGAR vision for regional security and growth.
Modi’s visit comes amid a thaw in relations after months of strain, particularly after President Muizzu—seen as pro-China—came to power on an “India Out” campaign. One of his early demands was the removal of Indian military personnel, which India later replaced with civilians to operate humanitarian aircraft.
In addition to the new credit line, both sides signed an agreement amending an earlier dollar-denominated loan, reducing the Maldives’ annual repayment burden by 40%, from $51 million to $29 million.
Foreign Secretary Vikram Misri said the fresh funds will fuel major infrastructure projects benefiting the Maldivian people, continuing India’s legacy of development assistance to the island nation.
Modi received a warm welcome at Velana International Airport from President Muizzu and key ministers, followed by a ceremonial reception at Republic Square. The two leaders held a one-on-one meeting before leading delegation-level talks aimed at restoring momentum in bilateral cooperation, especially in defence, security, and economic development.
India’s renewed outreach and economic support signal a diplomatic reset and a strong message of friendship in the strategically crucial Indian Ocean Region.
