PM Modi’s Landmark Visit to Maldives Signals Reset in Bilateral Ties, $565 Million Credit Line Announced

In a significant diplomatic development, Indian Prime Minister Narendra Modi arrived in the Maldives for a two-day state visit, coinciding with the island nation’s 60th Independence Day celebrations. This marks Modi’s first visit since the government of President Mohamed Muizzu assumed office, and signals a critical thaw in ties after a period of strained relations.

Upon his arrival in Malé, Prime Minister Modi received a ceremonial welcome that included a 21-gun salute, traditional performances by schoolchildren, and warm greetings from President Muizzu. The visuals of children waving Indian flags and chanting patriotic slogans added a symbolic layer to what many observers see as a strategic rapprochement.

During bilateral talks, both leaders signed eight key agreements, ranging from fisheries, digital payments (via UPI), healthcare, tourism, to infrastructure collaboration. A standout announcement was the extension of a $565 million Line of Credit by India, aimed at boosting Maldivian development in sectors of their choosing. Additionally, India offered debt relief by amending an earlier credit agreement, effectively reducing Maldives’ annual debt repayment burden from $51 million to $29 million.

Modi also proposed the launch of Free Trade Agreement (FTA) negotiations between the two nations, and pledged enhanced support in maritime security, reaffirming India’s continued commitment to the Maldives’ strategic and developmental needs. He reiterated India’s “Neighbourhood First” policy, stressing that a stable and prosperous Maldives is integral to regional security and cooperation in the Indian Ocean.

The visit comes at a pivotal time. President Muizzu, who previously called for the withdrawal of Indian military personnel and leaned toward Beijing, had caused considerable concern in New Delhi. However, recent diplomatic engagements suggest a recalibration of Muizzu’s foreign policy. The joint press conference avoided sensitive military topics, but reflected mutual interest in forward-looking economic and strategic collaboration.

Indian Foreign Secretary Vikram Misri hailed the visit as “timely and productive,” while former Maldivian President Mohamed Nasheed welcomed the developments as a return to an “India-first” approach.

As Prime Minister Modi attends the Maldivian Independence Day gala as Guest of Honour, the visit not only reaffirms India’s role as a key development partner but also resets the trajectory of bilateral relations with a renewed focus on trust, cooperation, and shared regional goals.