In a remarkable turnaround of diplomatic ties, India and Maldives have once again demonstrated the strength of their relationship. The same Maldives that once signaled a shift towards an “India Out” campaign, seeking to distance itself from Indian influence and allegedly leaning closer to China, has now rolled out the red carpet for Indian Prime Minister Narendra Modi. In a strong symbolic gesture, Maldives invited PM Modi as the Chief Guest for its Independence Day celebrations, even extending a 21-gun salute in his honor.
Maldives President Mohamed Muizzu personally received PM Modi at the airport, greeting him with a warm embrace. This high-profile visit marks a significant shift in Maldives’ foreign policy approach and reaffirms India’s central role in the island nation's development.
Following the ceremonial welcome, the two leaders held a crucial bilateral meeting, which culminated in the signing of four Memorandums of Understanding (MoUs) and three strategic agreements across key sectors. The talks focused on enhancing cooperation in defense, healthcare, education, housing, infrastructure, and economic development.
One of the most notable outcomes of the visit was India’s extension of a fresh line of credit worth $565 million (approximately ₹4850 crore) to the Maldives. This credit will be directed toward priority projects identified by the Maldivian government, spanning crucial sectors such as defense, sports, healthcare, education, and housing. President Muizzu expressed deep gratitude towards India, acknowledging New Delhi’s unwavering and generous support in helping the Maldivian economy navigate difficult liquidity and fiscal challenges.
President Muizzu announced that negotiations for a Free Trade Agreement (FTA) between India and Maldives have officially commenced. This initiative aims to boost bilateral trade and investment, offering increased market access for Maldivian products in India and making Indian goods more competitive in the Maldivian market. The FTA is expected to create mutually beneficial partnerships and deepen economic integration between the two nations.
India’s continued economic assistance includes a $400 million currency swap facility and an interest-free rollover of a treasury bill in May 2025. These steps are helping stabilize Maldives' financial position and demonstrating India’s commitment as a reliable partner.
Under India’s line of credit assistance, several key infrastructure projects have been launched. One significant achievement is the successful handover of 3,300 social housing units in Maldives, aimed at improving the standard of living for local communities. Furthermore, six new high-impact community development projects were jointly initiated during the visit.
India has also donated 72 vehicles and essential equipment to Maldives, further reinforcing defense and civil support. These initiatives are part of India’s Neighborhood First policy and its broader vision for cooperation across the Indian Ocean region.
In his address, Prime Minister Modi underscored that India is not just a neighbor, but a true partner and trusted friend of Maldives. He highlighted India’s swift assistance during crises—be it supplying essential commodities or supporting post-COVID economic recovery. Without naming China directly, PM Modi subtly reminded Maldives to choose partners who stand by in times of need, signaling India’s consistent and non-exploitative approach to diplomacy.
Prime Minister Modi stated that Maldives occupies a special place in both India’s Neighborhood First policy and maritime cooperation vision. He noted that last year, during President Muizzu’s visit to India, both nations shared a strategic vision for enhanced economic and maritime security cooperation, which is now materializing into reality.
India's expanding support to Maldives reflects its commitment to inclusive and sustainable regional development, based on mutual respect and trust. The tone of gratitude from President Muizzu and the elevated strategic partnership indicate that India has regained its key position in the Maldives—a nation that was once seen to be slipping into China's geopolitical orbit.
This diplomatic victory marks a significant milestone for India’s foreign policy, demonstrating that perseverance, respect for sovereignty, and timely support can yield long-term strategic dividends.
The transformation in India-Maldives relations is a testament to India’s principled diplomacy, which shuns expansionism and embraces genuine friendship. It also sends a strong message to regional players: that India remains a dependable partner whose presence brings growth, security, and stability.
