Prime Minister Narendra Modi participates in the 60th Independence Day celebrations of Maldives as the Guest of Honour at Male, in Maldives on July 26, 2025.
India Extends Rs 4,850 Crore Credit to Maldives
Malé: India and Maldives formalised several agreements and inaugurated development projects during Prime Minister Narendra Modi’s visit to Male on July 26, 2025, including a Line of Credit of INR 4,850 crores, debt repayment relief, and the initiation of Free Trade Agreement negotiations.
The visit marked a significant moment in bilateral relations, with Modi attending the 60th anniversary of the Maldives’ independence as Guest of Honour, the first time an Indian Prime Minister has participated in the event. This milestone coincided with 60 years of diplomatic relations between the two nations. President Mohammed Muizzu hosted Modi, who was the first foreign Head of State or Government to be welcomed by him. The leaders observed the Independence Day parade at Republic Square, where the Maldivian National Defence Forces and local units performed, alongside cultural displays highlighting the Maldives’ progress as a modern nation. Modi conveyed greetings to the Maldivian government and people, expressing appreciation for the invitation, which underscored the growing partnership between the two countries.
The agreements signed during the visit addressed economic and developmental priorities. India extended a Line of Credit of INR 4,850 crores, signed by Maldives’ Minister of Finance and Planning, Moosa Zameer, and India’s External Affairs Minister, Dr. S. Jaishankar, to support infrastructure and economic growth. An amendatory agreement, also signed by Zameer and Jaishankar, reduced the Maldives’ annual debt repayment obligations on existing Indian-funded Lines of Credit, easing financial burdens. Negotiations for an India-Maldives Free Trade Agreement (IMFTA) were launched, with Terms of Reference signed by Maldives’ Minister of Economic Development and Trade, Mohamed Saeed, and Jaishankar, aiming to enhance trade ties. A commemorative stamp was jointly issued to mark the 60th anniversary of diplomatic relations, symbolising the enduring connection between the nations.
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Developmental cooperation was a cornerstone of the visit. India handed over 3,300 social housing units in Hulhumale, funded through Buyers’ Credit facilities, addressing critical housing needs. Infrastructure advancements included the inauguration of a roads and drainage system in Addu city, improving urban connectivity, and six high-impact community development projects across the Maldives, designed to enhance local living conditions. India provided 72 vehicles and equipment to support logistical capabilities, alongside two BHISHM Health Cube sets to bolster healthcare access. The inauguration of the Ministry of Defence Building in Male, a modern facility, strengthened the Maldives’ administrative and security infrastructure. These projects reflect India’s commitment to supporting the Maldives’ development goals through tangible assistance.
Eight Memoranda of Understanding were exchanged, covering diverse sectors. An MoU on fisheries and aquaculture, signed by Maldives’ Minister of Fisheries and Ocean Resources, Ahmed Shiyam, and Jaishankar, aimed to enhance cooperation in marine resource management. Another agreement between India’s Indian Institute of Tropical Meteorology and Maldives Meteorological Services, signed by Maldives’ Minister of Tourism and Environment, Thoriq Ibrahim, and Jaishankar, focused on meteorological collaboration. An MoU on digital transformation, signed by Maldives’ Minister of Homeland Security and Technology, Ali Ihusaan, and Jaishankar, facilitated the sharing of India’s digital solutions implemented at a population scale. The recognition of the Indian Pharmacopoeia by Maldives, formalised through an MoU signed by Maldives’ Minister of Health, Abdulla Nazim Ibrahim, and Jaishankar, aimed to streamline pharmaceutical standards. A Network-to-Network Agreement between India’s NPCI International Payment Limited and the Maldives Monetary Authority, signed by Maldives’ Minister of Foreign Affairs, Dr. Abdulla Khaleel, and Jaishankar, introduced UPI in Maldives to simplify digital transactions.
The visit’s outcomes align with India’s neighbourhood-first policy, emphasising practical support for the Maldives’ economic stability, infrastructure development, and technological progress. The agreements and project inaugurations address immediate needs while laying the groundwork for long-term collaboration. Modi’s participation in the independence celebrations, coupled with the substantive deliverables, highlights the strategic importance of the Maldives in India’s regional framework. As both nations commemorate six decades of diplomatic ties, the visit reinforces a partnership built on mutual interests and shared developmental goals, setting a foundation for future cooperation in trade, technology, and community development.
– global bihari bureau
