Prime Minister Narendra Modi continued his two-day state visit to the Maldives on July 25, reaffirming the historic and strategic depth of the Indo-Maldivian partnership. Visiting as the Guest of Honour for the Maldives’ 60th Independence Day celebrations, PM Modi held extensive talks with President Mohamed Muizzu and announced a series of major initiatives aimed at elevating the bilateral relationship across trade, defence, and connectivity.
India extends Rs 4,850 cr credit, launches FTA talks as Modi reaffirms historic ties
During the visit, India announced an extension of a Rs 4,850 crore Line of Credit (LoC) to the Maldives, earmarked for key infrastructure development aligned with the priorities of the Maldivian people. This financial support also includes a reduction in the Maldives’ annual debt repayment obligations on India-funded projects, with Foreign Secretary Vikram Misri noting a 40% relief on repayments.
In a joint press conference held in Male, President Muizzu officially declared the initiation of negotiations for a Free Trade Agreement (FTA) with India. Echoing this milestone, Prime Minister Modi said, “For us, it is always friendship first,” reaffirming India’s role as the “most trusted” partner of the Indian Ocean archipelago.
މާލޭގެ ޖުމްހޫރީ މައިދާނުގައި މަރުޙަބާ ކިޔުމަށް ބޭއްވި ރަސްމިއްޔާތުގެ ތެރެއިން…@MMuizzu pic.twitter.com/I0K4FD8qMB
— Narendra Modi (@narendramodi) July 25, 2025
Addressing the deeper historical and cultural linkages between the two nations, Modi remarked, “The roots of our relations are older than history, and as deep as the ocean.” Congratulating the people of Maldives on their 60th Independence Day, he thanked President Muizzu for the invitation and reiterated India’s long-standing commitment to the region’s stability and prosperity.
India Extends Defence Aid, Infrastructure Support, and Connectivity projects
Talks between the two leaders focused on enhancing collaboration in trade, maritime security, infrastructure, and defence. Several India-assisted initiatives were jointly inaugurated, including 3,300 housing units in Hulhumale, roads and drainage systems in Addu City, and a new Ministry of Defence complex in Male. These developments are part of a broader Indian investment footprint that includes 4,000 social housing units, the Greater Male Connectivity Project, the Addu Road Development Project, and the redevelopment of Hanimaadhoo International Airport.
India and the Maldives fully understand the challenges of climate change and environmental degradation. And, we are committed to doing everything possible to boost sustainability.
This evening in Malé, President Muizzu and I planted saplings, strengthening ‘Ek Ped Maa Ke Naam’… pic.twitter.com/1mQKMOIIbd
— Narendra Modi (@narendramodi) July 25, 2025
Calling the new defence ministry building a “concrete building of trust,” PM Modi underscored that it symbolised the robust partnership between the two countries. He further affirmed India’s unwavering support in enhancing the Maldives’ defence capabilities, adding, “Peace, stability and prosperity in the Indian Ocean region is our common goal.”
To bolster the Maldivian Defence Ministry’s operational readiness, PM Modi handed over 72 vehicles and equipment. President Muizzu also acknowledged India’s generous assistance in supporting the Maldivian economy and easing liquidity challenges. “I express my sincere appreciation to India for the provision of 72 vehicles for the Maldivian Defence Ministry,” he said.
Connectivity featured as a key theme of the visit. PM Modi highlighted the progress on India-backed projects that are set to transform inter-island travel and logistics in the archipelago. “With the ferry system soon in place, island connectivity will become faster and easier. We’ll measure distances by ferry time, not GPS coordinates,” he stated.
Fresh Momentum in Digital Integration, Security, and Regional Collaboration
The two sides also agreed to finalise a Bilateral Investment Treaty soon. Modi noted that direct Rupee-Rufiyaa trade through a local currency settlement system is being explored, which will further simplify and boost bilateral commerce. In a significant nod to digital integration, PM Modi spotlighted the rapid adoption of India’s Unified Payments Interface (UPI) system in the Maldives. “The speed with which UPI is being promoted in the Maldives will give a boost to both tourism and retail,” he noted.
The Indian diaspora plays a crucial role in furthering friendship between India and the Maldives. Happy to have interacted with members of the diaspora and I thank them for the warm welcome. pic.twitter.com/dYedQWDWjw
— Narendra Modi (@narendramodi) July 25, 2025
Strategic and regional cooperation formed another pillar of the visit, with PM Modi reiterating India’s commitment to maritime security in the Indian Ocean through mechanisms like the Colombo Security Conclave. Climate change, a shared regional concern, was also discussed, with Modi pledging India’s support in renewable energy and capacity-building. “We will promote renewable energy and share India’s expertise with the Maldives,” he said.
The visit marked a notable reset in ties between New Delhi and Male, particularly after a period of diplomatic unease. PM Modi referred to the evolving bilateral framework that began with President Muizzu’s October 2024 visit to India. “Now it is becoming a reality. And as a result of that, our relations are touching new heights,” he said.
Reinforcing the Maldives’ position within India’s strategic framework, Modi said, “The Maldives holds an important place in both India’s Neighbourhood First policy and its MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) vision.” He also praised the swift and consistent support that India has extended to the Maldives during times of need. “India is also proud to be the most trusted friend of the Maldives. Be it a disaster or a pandemic, India has always stood by as a ‘first responder’,” the Prime Minister added.
In all, PM Modi’s visit to the Maldives signals a significant deepening of bilateral relations, with concrete announcements in financial aid, defence cooperation, infrastructure development, and trade negotiations. As both nations chart a new phase in their partnership, the visit underscores India’s enduring commitment to being a reliable neighbour, development partner, and strategic ally in the Indian Ocean.
Held very fruitful discussions with President Muizzu. Maldives is at the core of our ‘Neighbourhood First’ and Mahasagar Vision. Our discussion covered several sectors, notably commercial and cultural linkages. We both agree that the India-Maldives friendship will always be… pic.twitter.com/wNlXkx3suz
— Narendra Modi (@narendramodi) July 25, 2025
Prime minister arrived in Male from London in the second and final leg of his two-nation tour. He was warmly received at Velena International Airport by President Mohamed Muizzu and senior Maldivian ministers. The visit began with a ceremonial welcome and a guard of honour at Republic Square, setting the tone for a landmark engagement that reaffirmed the deepening partnership between India and the Maldives. This marks his third visit to the island nation, and the first by any head of state or government since President Muizzu assumed office.
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