India-Maldives Relations Strengthened During PM Modi's Visit
By Global Leaders Insights Team | Jul 26, 2025
Prime Minister Narendra Modi wrapped up a two-day visit to the Maldives today, marking a fresh chapter in India-Maldives relations.Invited by President Mohamed Muizzu, Modi was the Guest of Honour at the Maldives’ 60th Independence Day celebrations, a first for a foreign leader during Muizzu’s term. The visit also celebrated 60 years of diplomatic friendship between the two countries.
In Male, Modi and Muizzu held productive talks to rebuild ties after earlier tensions from Muizzu’s “India Out” campaign. India offered a generous ₹4,850 crore ($565 million) credit line to support infrastructure projects and eased repayment terms on past loans, giving the Maldives some financial breathing room.
They also kicked off talks for a new India-Maldives Free Trade Agreement to boost trade and tourism, with India’s UPI payment system gaining popularity in the islands.
- PM Modi's Maldives Visit Marks New Era in India-Maldives Relations on 60th Independence Day
- India Extends ₹4,850 Crore Credit Line, Launches Key Projects to Deepen Maldives Ties
- Modi and Muizzu Rebuild Bilateral Trust with Defence Support, UPI Expansion, and Trade Talks
Together, the leaders launched several projects, including a new Ministry of Defence building, 3,300 homes in Hulhumale, and upgraded roads and drainage in Addu City. Modi also handed over 72 vehicles to the Maldives National Defence Force, reinforcing India’s support for regional security. “Our bond is deeper than the ocean and older than history,” Modi said, calling India the Maldives’ “closest ally.”
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Despite a now-deleted critical social media post by Muizzu’s brother-in-law, India’s Foreign Secretary Vikram Misri brushed it off, focusing on the “bright future” of the partnership. Modi received a warm welcome, complete with a 21-gun salute and lively celebrations in Male. The visit, aligned with India’s Neighbourhood First policy and MAHASAGAR vision, highlights the Maldives’ key role in the Indian Ocean region, strengthening ties through trust and cooperation.
