During a significant two-day diplomatic visit to the Maldives, Prime Minister Narendra Modi reaffirmed India’s long-standing commitment to supporting the development and prosperity of the island nation through a comprehensive bilateral partnership. One of the central outcomes of this visit was the signing of a substantial financial agreement under which India will provide the Maldives with a new Line of Credit (LoC) valued at ₹4,850 crore. This financial assistance is set to play a crucial role in financing a range of vital infrastructure and development projects across the country, enabling sustainable economic growth.
In addition to the new LoC, both countries signed an amendatory agreement aimed at reducing the Maldives’ annual debt repayment burden on previously sanctioned Indian-funded credit lines. This strategic move will provide the Maldivian government with greater fiscal breathing space and contribute to long-term financial stability.
The visit also marked the beginning of formal negotiations on the proposed India-Maldives Free Trade Agreement (IMFTA). This agreement, once finalized, is expected to significantly boost trade volumes, open new market opportunities, and enhance overall economic cooperation between the two nations.
To celebrate the 60th anniversary of the establishment of diplomatic relations between India and the Maldives, both nations jointly released a commemorative postage stamp, symbolizing the enduring friendship and shared history between the two countries.
Several bilateral Memorandums of Understanding (MoUs) were also signed to deepen sector-specific collaboration. These included agreements in fisheries and aquaculture, meteorological data sharing and research between the Indian Institute of Tropical Meteorology and the Maldives Meteorological Services, as well as cooperation in digital governance initiatives. The latter will focus on the transfer of scalable digital solutions from India to the Maldives, accelerating the island nation’s journey toward digital transformation.
Another key agreement signed during the visit was an MoU for the recognition of Indian Pharmacopoeia standards by Maldivian regulatory authorities. This will pave the way for easier and more transparent pharmaceutical trade between the two countries, benefiting both healthcare systems.
To further strengthen financial interconnectivity, a network-level partnership was established between NPCI International Payments Limited and the Maldives Monetary Authority. This agreement will enable the implementation of India’s Unified Payments Interface (UPI) in the Maldives, offering faster and more secure digital payment options and boosting financial inclusion in the country.
The visit also included the inauguration and formal handover of multiple development projects financed by India. Among them was the transfer of 3,300 social housing units in Hulhumale, constructed under India’s Buyers’ Credit program, and the launch of a new road and drainage infrastructure project in Addu City.
In addition, six High Impact Community Development Projects (HICDPs) will be inaugurated as part of India’s effort to improve grassroots-level infrastructure across various Maldivian islands. Reinforcing defense cooperation, India also donated 72 vehicles and a range of equipment to the Maldivian Ministry of Defence, thereby strengthening the nation’s security capabilities.
Together, these agreements and developmental initiatives reflect the deepening strategic and developmental cooperation between India and the Maldives, underpinned by shared values, regional solidarity, and mutual trust.
