Kumar Bahukhandi
Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu during a meeting at the President’s Office, in Male-Photo Credit- PTI
26 July 2025 1:18 AM Offers $565-mn credit line, debt obligation cut
New Delhi: Boosting bilateral economic and defence cooperation, Prime Minister Narendra Modi on Friday held talks with Maldivian President Mohamed Muizzu, after which the two countries signed eight agreements, including a fresh Line of Credit (LoC) of ₹4,850 crore ($565 million) denominated in Indian currency for infrastructure development in the archipelago. Calling India the Maldives’ “most trusted friend” and recalling New Delhi’s record as a “First Responder” in every Maldivian emergency, Modi said, “for us, it is always friendship first,” adding that the goal is “from paperwork to prosperity.” He noted that the LoC would fund projects aligned with Maldivian priorities, and hailed bilateral ties as “older than history and as deep as the ocean,” now “touching new heights,” assuring that “whatever the weather, our friendship will always remain bright and clear.” The visit is being seen as a strategic success for India amid a turnaround in ties since last year and as crucial to counter China’s influence in the region.
Another key pact was an amendatory agreement that sharply reduces the Maldives’ annual debt repayment obligations to India by about 40 per cent, from $51 million to US$29 million, by closing an earlier US$800 million LoC under which repayments had kicked in despite unutilised funds; foreign secretary Vikram Misri said both sides decided “rationalisation” was necessary under the special circumstances.
A third pact finalised the Terms of Reference for an India-Maldives Free Trade Agreement, with negotiations expected to conclude “very quickly,” while both nations also agreed to work towards finalising a Bilateral Investment Treaty to accelerate mutual investment.
A fourth pact, a Network-to-Network agreement between NPCI International Payments Ltd (NIPL) and the Maldives Monetary Authority (MMA), will enable UPI in the Maldives, easing payments for Indian tourists; Modi said that with a local currency settlement system, trade can take place directly in rupees and rufiyaa, and that rapid UPI adoption will boost both tourism and retail.
Citing Indian-assisted projects such as the Greater Malé Connectivity Project, the Addu road development project and the redeveloped Hanimaadhoo International Airport, he said the region will emerge as an important transit and economic hub. Defence and security ties were also strengthened, with India handing over 72 vehicles to the Maldives National Defence Force and inaugurating a new Defence Ministry building in Malé; Modi called defence cooperation a symbol of “mutual trust” and, in a thinly veiled message to China, reaffirmed India’s support for enhancing Maldivian defence capabilities and for strengthening regional maritime security through the Colombo Security Conclave.
India also handed over 3,300 social housing units in Hulhumalé under its Buyer’s Credit Facilities, inaugurated a roads and drainage project in Addu City, and launched six High Impact Community Development Projects.
Additional MoUs covered cooperation in fisheries and aquaculture; collaboration between India’s IITM (Ministry of Earth Sciences) and the Maldives Meteorological Services; sharing population-scale digital public goods between India’s Ministry of Electronics and IT and the Maldives’ Ministry of Homeland Security and Technology; and recognition of the Indian Pharmacopoeia to ensure access to high-quality Indian medicines.
Modi arrived in Malé on Friday July 25, 2025 to a ceremonial welcome, held one-on-one talks followed by delegation-level discussions, and will be the guest of honour at the Maldives’ Independence Day celebrations on Saturday. President Muizzu thanked India for its financial assistance and cooperation in defence, health and housing, and sought more direct flights to boost people-to-people ties and tourism.
Marking 60 years of diplomatic relations, a postage stamp featuring traditional boats of both countries was released, with Modi remarking that the two nations are “not only neighbours, but fellow travellers.” Placing the Maldives at the heart of India’s “Neighbourhood First” policy and MAHASAGAR vision, he said India is proud to be its most trusted friend and first responder, whether in disasters, pandemics, essential supplies or post-Covid economic support. Recalling President Muizzu’s October visit to India, he said their shared vision of a comprehensive economic and maritime security partnership is becoming a reality, noting that 4,000 social housing units built with Indian cooperation will offer “a new beginning” to many Maldivian families. He added that an imminent ferry system would make inter-island movement easier, “the distance between islands will not be measured by GPS, but by ferry time”, and stressed that both countries face the common challenge of climate change, pledging that India will share its renewable energy experience with the Maldives. Box:
At a special media briefing in Malé on Friday July 25 , foreign secretary Vikram Misri was asked by Maldivian journalists about certain critical and allegedly hateful remarks reportedly made against Prime Minister Narendra Modi by Abdullah bin Mohamed, brother-in-law of Maldivian President Mohamed Muizzu, in a now-deleted social media post.
Responding to the question, Misri said he was unaware of the matter but asserted that India-Maldives ties are “strong enough to withstand any passing remarks and to withstand the test of time.” When further asked about critical remarks made early last year by some former Maldivian ministers against Prime Minister Modi and whether India expected an apology for the hurt caused, the foreign secretary said he preferred to focus on the future rather than dwell on the past.
( Source : PTI) 
