Modi and Muizzu Seal India–Maldives Strategic Deals on Trade, Defence, Digital Payments and Climate
India and the Maldives have deepened their strategic partnership across sectors including infrastructure, trade, digital transformation, and defence during Indian Prime Minister Narendra Modi’s state visit to Male. This marked the 60th anniversary of diplomatic ties between the two countries.
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| Image Source: PM NaMo |
In a joint press statement, Prime Minister Modi underlined the civilizational and maritime depth of the India-Maldives relationship, describing the Maldives as a vital pillar of India’s “Neighbourhood First” and “Vision MAHASAGAR” strategies.
He reiterated India’s role as Maldives’ most reliable development partner and first responder during crises, from disaster relief to pandemic recovery.
Among the major outcomes, India announced a new Line of Credit worth ₹4,850 crore (USD 565 million), to support Maldives’ infrastructure priorities. A bilateral Free Trade Agreement (FTA) is now officially under negotiation, with terms of reference finalized during the visit.
A separate network-to-network agreement was signed to operationalize India’s Unified Payments Interface (UPI) in the Maldives through collaboration between NPCI International and the Maldives Monetary Authority.
List of Outcomes: State visit of PM @narendramodi to Maldives⬇️ pic.twitter.com/k2B3TnOK4A
— Randhir Jaiswal (@MEAIndia) July 25, 2025
India and the Maldives also agreed to negotiate a Bilateral Investment Treaty and adopt a local currency trade settlement system enabling rupee-rufiyaa transactions.
The partnership now spans climate action and ocean governance as well. Both leaders planted mango saplings as part of India’s ‘Ek Ped Maa Ke Naam’ initiative and Maldives’ ‘Five Million Tree Plantation’ pledge.
India has pledged support in renewable energy and weather science through joint work between the Indian Institute of Tropical Meteorology and the Maldives Meteorological Service.
On defence, the two sides jointly inaugurated a new Ministry of Defence building in Male, constructed with Indian support.
The facility is seen as a milestone in Indo-Maldivian military cooperation and a symbol of long-standing trust. India also handed over 72 vehicles and defence equipment to Maldivian authorities, affirming support for capacity-building in the island nation.
Key project inaugurations included 3,300 social housing units in Hulhumale, road and drainage upgrades in Addu City, and multiple high-impact community development projects.
India also transferred two BHISHM Health Cube sets to bolster emergency medical services and disaster preparedness.
A memorable welcome in Maldives. Strong ties between our nations will greatly benefit our people. 🇮🇳 🇲🇻 pic.twitter.com/qQVoB51FJw
— Narendra Modi (@narendramodi) July 25, 2025
The agreements signed covered sectors ranging from fisheries and aquaculture to pharmacopoeia recognition, digital governance, and debt restructuring. India agreed to reduce annual repayment obligations on earlier government-funded Lines of Credit.
Both leaders emphasized people-to-people linkages, with President Muizzu noting that these timeless connections are the foundation of the bilateral relationship.
The commemorative stamp released by the two leaders features traditional boats of both nations and symbolizes a shared maritime journey.
The visit sets the tone for accelerated cooperation across strategic, economic, and social sectors.
Prime Minister Modi concluded by assuring that India will stand firmly with the Maldives at every step of its development journey, reaffirming that the friendship between the two countries will always remain, in his words, “bright and clear.”