 "Modi meets Muizzu: $565 mn line of credit cleared, India-Maldives free trade deal next?")
Prime Minister Narendra Modi’s first day in the Maldives was productive, as Male seeks to reset ties with India after a year of heightening tensions between the two countries that disrupted tourism in the island nation.
India has announced a fresh line of credit for the Maldives worth $565 million and the two countries signed an agreement to reduce their annual debt repayment burden by 40 per cent.
PM Modi arrived in Male on Friday and was received by Maldivian President Mohamed Muizzu at the airport. After a day of meetings, both leaders affirmed their commitment to a bilateral investment pact and a free trade agreement. India and the Maldives also signed seven MoUs and agreements.
India-Maldives ties ‘as deep as the ocean’
The two sides sealed six pacts in the fields of fisheries and aquaculture, meteorology, digital public infrastructure, UPI, Indian pharmacopoeia, and for India’s concessional line of credit to the island nation.
“For us, it is always friendship first,” Modi said in his media statement, adding the “roots of our relations are older than history, and as deep as the ocean.”
The outcomes of the Modi-Muizzu talks signalled a major turnaround in the relationship after a spell of unease and tension. The renewed intensity in the ties assumes significance as Muizzu came to power in November 2023 on the back of an “India Out” campaign.
In his comments, Muizzu appreciated India’s “pivotal role” in supporting the Maldives to manage its economic challenges.
“India’s continued assistance to the Maldives through the export of essential commodities is a key facet of our bilateral cooperation under the long-standing trade agreement,” he said.
Impact Shorts
View AllHeld 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
Modi and Muizzu also jointly inaugurated a number of India-assisted projects, including a new defence ministry building in Male, roads and drainage systems in Addu city and 3,300 housing units in Hulhumale.
The prime minister also handed over 72 vehicles and equipment for use by the Maldives National Defence Force.
Refresh for updates.
 "Will Pakistan go to war with India over the Indus Waters? Or are the threats hollow?")
 "Jaishankar to visit Moscow to hold talks with Sergey Lavrov on August 21, says Russia")
 "How a diamond pendant led to South Korea's former first lady's imprisonment")
 "What is the Donbas region that Zelenskyy has refused to cede to Russia?")
 "Will Pakistan go to war with India over the Indus Waters? Or are the threats hollow?")
 "Jaishankar to visit Moscow to hold talks with Sergey Lavrov on August 21, says Russia")
 "How a diamond pendant led to South Korea's former first lady's imprisonment")
 "What is the Donbas region that Zelenskyy has refused to cede to Russia?")
