Modi Pledges $565m to Maldives, Launches Trade Talks During Official Visit

Indian Prime Minister Narendra Modi has announced a $565 million credit line to the Maldives and launched formal talks on a free trade agreement during his two-day official visit to the Indian Ocean nation.

The move is part of New Delhi’s effort to deepen development and strategic ties with the Maldives, a key regional partner where India has long competed with China for influence. Speaking on Friday in the capital Male, Modi said the credit line would be used for infrastructure projects aligned with the Maldivian people’s priorities.

“This will strengthen development cooperation between our countries and support major sectors like healthcare, housing, education, and national security,” Modi stated.

The Indian leader, on his first trip to the Maldives since winning a third term, reaffirmed India’s position as the country’s “first responder” in times of crisis and pledged continued support in enhancing Maldivian defence capabilities.

“Peace, stability, and prosperity in the Indian Ocean region are our shared goals,” he said.

Ties between India and the Maldives had cooled following the 2023 election of President Mohamed Muizzu, who campaigned on an anti-India platform. His administration initially pivoted toward Beijing, requesting the withdrawal of a small Indian military contingent operating search-and-rescue aircraft in the archipelago.

However, relations have since improved. India extended economic assistance to help the Maldives avoid default amid a slowdown in tourism, its key economic sector. Muizzu has also toned down his earlier rhetoric and met with Modi twice in 2024, with both leaders vowing to reset ties.

On Friday, President Muizzu welcomed Modi in Male and expressed appreciation for India’s support. He said the new credit line would boost security, infrastructure, and essential services in the Maldives.

“India’s continued export of essential commodities and its support for strategic projects remain vital to our national development,” Muizzu noted.

During his visit, Modi also virtually inaugurated the expansion of the Hanimaadhoo International Airport — a project funded by India — and is expected to attend the Maldives’ 60th Independence Day celebrations before departing on Saturday.

India and the Maldives are also set to finalize a bilateral investment agreement aimed at deepening economic cooperation in the coming months.