Prime Minister Narendra Modi’s state visit to the Maldives on July 25–26, 2025, has been hailed by both sides as a timely and productive engagement, marking a significant step in revitalizing and deepening India-Maldives bilateral cooperation.

This landmark event, Modi's third official visit to the Maldives and the first by any head of government during President Mohamed Muizzu's administration, was characterised by high-level ceremonial and substantive interactions.

On arrival in Malé, Modi was warmly received by President Muizzu and his cabinet, underscoring the importance the Maldives places on ties with India. The ceremonial welcome included a Guard of Honour and a special cultural performance, highlighting the diplomatic goodwill that set the stage for the strategic discussions to follow.

Central to the visit were comprehensive talks between Prime Minister Modi and President Muizzu, which provided an opportunity to review the entire spectrum of India-Maldives relations.

The leaders especially reflected on progress made since October 2024, when President Muizzu visited India and the two countries adopted the Joint Vision for a Comprehensive Economic and Maritime Security Partnership. The discussions resulted in renewed commitments and concrete agreements targeting the long-term prosperity and security of both nations.

A major outcome was the extension of a new Line of Credit (LoC) worth ₹4,850 crore (approximately $565 million), notably the first to the Maldives denominated in Indian rupees. This LoC is designed to finance vital infrastructure projects across the archipelago and demonstrates India’s continued commitment to the Maldives’ development needs.

In parallel, an amendment to existing credit arrangements will significantly ease the Maldives’ financial burden, reducing annual debt repayment obligations by 40%—from nearly $51 million to about $29 million. This move aims to provide greater fiscal space for Malé and sustain its economic growth.

Beyond financial agreements, several Memoranda of Understanding (MoUs) were inked, expanding cooperation across diverse sectors:

Fisheries & Aquaculture: Collaboration intended to support sustainable growth and food security.
Meteorology: Partnerships between India’s Meteorological Institute and Maldivian counterparts to bolster climate resilience.
Digital Transformation: Agreements on sharing India’s successful population-scale digital solutions, aiming to boost digital governance in the Maldives.
Pharmaceuticals: Recognition of Indian pharmacopoeia, ensuring easier access to high-quality medicines in the Maldivian market.
FinTech Integration: A network-to-network agreement between India’s NPCI (Unified Payments Interface) and the Maldives Monetary Authority, paving the way for UPI payment systems in Maldives, which will benefit tourism and business exchanges.

Symbolic and development-driven gestures also marked Modi’s visit. He handed over 3,300 social housing units in Hulhumale, celebrated the inauguration of roads and drainage infrastructure in Addu City, and jointly opened the Ministry of Defence building in Malé. Additionally, Modi presented vehicles and emergency health kits to the Maldives National Defence Force, emphasizing India’s support for Maldivian security and public welfare.

Environmental and people-centric initiatives included tree planting under the “Ek Ped Maa Ke Naam” program and the delivery of health equipment intended for remote communities. The commemorative stamps released during the visit marked the 60th anniversary of India-Maldives diplomatic relations.

Looking ahead, the two countries have agreed to launch Free Trade Agreement (FTA) negotiations and move forward with a Bilateral Investment Treaty, signalling enhanced economic integration. Both sides reaffirmed their commitment to security collaboration, defence capacity-building, and shared prosperity in the Indian Ocean region, with Modi reiterating India's 'Neighbourhood First' policy and the importance of strategic trust and regional stability.

The significance of the visit was capped by Modi’s role as Guest of Honour at the Independence Day celebrations at Republic Square, reflecting the deep historical roots and vibrant future of India-Maldives relations.

According to Foreign Secretary Vikram Misri, the engagements and outcomes of this visit represent a “very, very timely and productive” renewal of India-Maldives partnership, with leaders agreeing to implement the joint vision and explore new areas for collaboration, building on a tradition of friendship and mutual support.

Based On ANI Report