Prime Minister Narendra Modi embarked on a landmark two-day visit to the Maldives on Friday, marking a new chapter in bilateral cooperation with the signing of several key agreements aimed at deepening ties between the two neighbouring nations.
After being accorded a ceremonial welcome at Republic Square in Male, PM Modi was received by Maldivian President Mohamed Muizzu and escorted in a cultural procession to the President’s Office. The Maldives National Defence Force (MNDF) honoured him with a traditional “Haiykolhu” and a Guard of Honour, highlighting the island nation’s gesture of goodwill.
Rs. 4,850 Crore Line of Credit in Indian Rupees
One of the most significant outcomes of the visit was India’s extension of a fresh ₹4,850 crore Line of Credit to the Maldives — the first such credit denominated in Indian rupees. This marks a shift from earlier dollar-based lines of credit and reflects India’s commitment to supporting infrastructure and development in the Maldives.
Foreign Secretary Vikram Misri stated that the credit line will facilitate a range of new projects to improve infrastructure and benefit Maldivian citizens. “This agreement continues India’s long-standing tradition of developmental partnership with the Maldives,” he said. An amendment to the earlier dollar-denominated line of credit was also signed.
Free Trade Agreement Talks Begin
In a joint press conference, President Muizzu and Prime Minister Modi announced the commencement of negotiations for a comprehensive Free Trade Agreement (FTA) between the two countries. The Foreign Secretary indicated optimism about a swift conclusion to the agreement, which aims to bolster economic cooperation and enhance trade flows.
“This landmark initiative marks a significant step forward in strengthening our economic partnership,” President Muizzu said.
Expanding Sectoral Cooperation
Beyond trade and credit, the two sides inked several MoUs to boost collaboration in fisheries, aquaculture, digital services, and meteorological research. An MoU was signed between the Indian Institute of Tropical Meteorology and the Maldives Meteorological Services to advance scientific cooperation in climate and weather monitoring.
In a notable development for the pharmaceutical industry, the Maldives agreed to officially recognise the Indian Pharmacopoeia (IP), India’s standard reference for medicines.
Connectivity, Housing, and Defence Support
India’s continued support for the Greater Male Connectivity Project was acknowledged by President Muizzu as a flagship symbol of Indo-Maldivian friendship. Additionally, India handed over 72 vehicles to the Maldives National Defence Force, strengthening the island nation’s logistical capacity.
President Muizzu also announced the handover of 3,300 housing units under the India-backed 4,000-unit project, calling it a major milestone in tackling housing challenges in the Maldives.
Tourism and Direct Flights on the Agenda
Tourism, a vital pillar of the Maldivian economy, was another focus area during the talks. Both leaders discussed ways to deepen cooperation and improve connectivity, including launching direct flights between the two countries to boost travel and tourism.
“I thank the Government of India for being a key partner in our health sector and a major source market for Maldivian tourism,” said President Muizzu.
A Strengthened Partnership
The visit reaffirmed India’s role as a close and reliable development partner of the Maldives. With agreements spanning infrastructure, trade, defence, health, and climate science, the two leaders signalled a shared commitment to further enhancing strategic and people-centric cooperation in the Indian Ocean region.
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