Indian Prime Minister Narendra Modi has announced a $565-million line of credit to the Maldives during his visit to the Indian Ocean archipelago.
Indian Prime Minister Narendra Modi, and Maldives President Mohamed Muizzu, back to camera hug each other upon Modi’s arrival at the airport, in Male, Maldives, Friday, July 25, 2025.
President of the Maldives Mohamed Muizzu, right, shakes hand with Indian Prime Minister Narendra Modi after signing a memorandum of understanding between the two countries in Male, Maldives, Friday, July 25, 2025.
In this photo provided by the Maldivian President’s Office, Indian Prime Minister Narendra Modi embraces the Maldivian president Mohamed Muizzu after his arrival in Male, Maldives, Friday, July 25, 2025.(Maldivian President’s Office via ).
In this photo provided by the Maldivian President’s Office, Indian Prime Minister Narendra Modi shakes hands with Maldivian president Mohamed Muizzu after his arrival in Male, Maldives, Friday, July 25, 2025.(Maldivian President’s Office via ).
Indian Prime Minister Narendra Modi, center, and Maldives President Mohamed Muizzu, center right, watch a traditional welcome dance upon Modi’s arrival at the airport, in Male, Maldives, Friday, July 25, 2025.
COLOMBO, Sri Lanka () — Indian Prime Minister Narendra Modi on Friday announced a $565-million line of credit to the Maldives during a visit to the Indian Ocean archipelago, as the two countries launched formal talks for a free-trade agreement.
Modi is visiting the Maldives, known for its upmarket tourist resorts, to mark the 60th anniversary of its independence and diplomatic relations between the two countries.
The announcement came during Modi’s joint media statement with Maldives’ President Mohamed Muizzu.
The two-day visit is crucial to India’s ambition to control the seas and shipping routes of the Indian Ocean in a race with its regional rival China.
It also marks the further easing of diplomatic tensions between the two nations that followed the election of pro-China Muizzu in 2023.
Regional powers India and China compete for influence in the archipelago nation, which is strategically located in the Indian Ocean.
On Friday, Modi witnessed the exchange of agreements to cooperate in sectors such as fisheries, health, tourism and digital development.
He also formally handed dozens of heavy vehicles to the Maldives’ defense forces.
The political importance lies in whether the issue moves from public comment into formal action, party response, court record, election authority notice or administrative decision.
For public institutions and political groups, the next test is whether the issue remains a public argument or turns into a formal response, legal proceeding, administrative instruction or election-related communication.
