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Modi Secures $565 Million Credit Line and Free-Trade Talks in Maldives

It marks India’s strategy to broaden its influence by bolstering financial stability alongside defence capabilities in the Maldives

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PM Narendra Modi with Maldives President Mohamed Muizzu on the concluding day of his visit to the island nation on July 26.
India’s Prime Minister Narendra Modi (centre) plants a tree sapling during his state visit in Male on July 25 as the Maldives’ President Mohamed Muizzu looks on. Photo: AFP
PM Modi attended the 60th Independence Day celebrations of Maldives at the Republic Square in Male as the Guest of Honour.

Overview

  • During his July 25–26 state visit as Guest of Honour for the 60th Independence Day, PM Modi announced a US$565 million credit line and reduced annual debt repayments to ease the Maldives’ fiscal pressures.
  • India delivered 72 vehicles to the Maldives National Defence Force and pledged further personnel training and maritime support to enhance regional security cooperation.
  • Negotiations on a free-trade agreement and a bilateral investment treaty were formally launched to deepen economic integration under India’s Neighbourhood First policy.
  • The Maldives appointed Bollywood star Katrina Kaif as its tourism ambassador and set a 200,000-Indian-visitor target to revive arrivals after last year’s diplomatic-triggered boycott.
  • Stalled Chinese loan-restructuring talks since January 2024 have allowed India to counter Beijing’s influence through more attractive financial and development offers.