Indian Prime Minister Narendra Modi has pledged a $565 million credit line to the Maldives, a strategic archipelago in the Indian Ocean, as part of a bid to strengthen bilateral ties and boost infrastructure development. Modi’s two-day visit to the Maldives aims to enhance India’s development partnership with the island nation, where India competes with China for influence.
During his visit, Modi emphasized India’s commitment to supporting the Maldives’ development priorities. “This will be used for projects linked to infrastructure development in line with the priorities of the Maldivian people,” he said, highlighting the significance of the credit line. Modi also stressed that India will remain the “first responder” for the Maldives, underscoring the country’s role as a trusted partner. “India will continue to support the Maldives in strengthening its defence capabilities,” he added. “Peace, stability, and prosperity in the Indian Ocean region are our shared goals.”
Modi and Maldives President Mohamed Muizzu have launched formal talks for a free trade agreement, aiming to deepen cooperation across multiple sectors, including tourism, healthcare, and housing. Muizzu expressed his country’s commitment to strengthening bilateral ties with India, saying, “Looking ahead, we are fully committed to further strengthen our cooperation with India across a broad range of sectors through exchange of high-level visits.” The Maldives’ president also highlighted the importance of India’s continued assistance in exporting essential commodities, stating, “India’s continued assistance to the Maldives through the export of essential commodities is a key facet of our bilateral cooperation.”
The Maldives had briefly drifted towards China’s orbit after Muizzu’s election in 2023, prompting concerns in New Delhi. However, India helped prevent the $7.5 billion economy from defaulting on its debt, and Muizzu has since toned down his anti-India rhetoric. Modi’s visit marks a significant step in rebuilding and strengthening bilateral ties. The Indian prime minister will remotely inaugurate an expansion of the international airport on the island of Hanimaadhoo, which India is helping to finance, and attend the Maldives’ 60th Independence Day celebrations in the capital, Male.