MALE, Maldives – July 26, 2025: Prime Minister Narendra Modi, on a significant state visit to the Maldives, the second and concluding leg of his two-nation tour, on Friday emphatically reiterated the island nation’s pivotal role in India’s “Neighbourhood First” policy and the broader “SAGAR” (Security and Growth for All in the Region) vision.
The visit, marking the 60th anniversary of Maldives’ independence and 60 years of diplomatic relations between the two nations, signals a concerted effort to reset and deepen bilateral ties that have experienced recent fluctuations.
Upon his arrival at Velana International Airport, Prime Minister Modi was accorded a warm and personal reception by Maldivian President Mohamed Muizzu and several cabinet ministers, a gesture that underlined the importance Male attaches to this visit. He was later honored with a ceremonial welcome and a Guard of Honour at the iconic Republic Square.
In his remarks, PM Modi highlighted India’s steadfast commitment as a “first responder” to the Maldives during times of adversity. “India is proud to be the Maldives’ most trusted friend. Be it a disaster or a pandemic, India has always stood by as the ‘first responder’,” he affirmed, emphasizing the consistent humanitarian and logistical support provided by New Delhi.
A key focus of the discussions was the tangible progress made under the “Comprehensive Economic and Maritime Security Partnership” vision, which was first outlined during President Muizzu’s visit to New Delhi in October 2024. “Now it is materializing. As a result, our relations are reaching new heights,” Prime Minister Modi stated, indicating that the framework is moving from conceptualization to concrete action.
Among the significant developments, Prime Minister Modi lauded the successful implementation of India’s Unified Payments Interface (UPI) system in the Maldives. This digital payment infrastructure is expected to significantly boost tourism and retail sectors in the island nation, fostering greater economic integration.
The Network-to-Network Agreement between India’s NPCI International Payment Limited (NIPL) and the Maldives Monetary Authority (MMA) on UPI in Maldives was signed during the visit, with technical work now underway for its full operationalization.
During their extensive talks, PM Modi and President Muizzu also took stock of various collaborative initiatives. India announced an extension of a Line of Credit of INR 4,850 crores (approximately USD 565 million) to the Maldives, aimed at supporting infrastructure development and other vital projects. Furthermore, an amendatory agreement was exchanged to reduce the Maldives’ annual debt repayment obligations on existing Indian government-funded Lines of Credit, offering significant financial relief.
The leaders also officially launched negotiations for an India-Maldives Free Trade Agreement (IMFTA), signaling a deepening of economic engagement. They witnessed the exchange of six MoUs across various sectors, including fisheries and aquaculture, meteorology, digital public infrastructure, UPI, Indian pharmacopoeia, and concessional Lines of Credit.
Additionally, they virtually inaugurated a roads and drainage system project in Addu city and six High Impact Community Development Projects in other parts of the Maldives.
This visit, the first by an Indian Head of State to the Maldives since President Muizzu assumed office, is seen as crucial in re-calibrating the relationship which had faced strains in recent months, notably due to President Muizzu’s “India Out” campaign during his election and subsequent remarks by Maldivian officials.
India’s consistent efforts, including economic assistance and unwavering support, are widely credited for bringing the ties back on a positive trajectory.
The discussions also touched upon strengthening defence and maritime security cooperation, with a particular nod to collaboration under the Colombo Security Conclave. PM Modi reiterated India’s commitment to supporting the Maldives in strengthening its defence capabilities, underscoring the mutual trust and shared security interests in the Indian Ocean Region.
As India and the Maldives commemorate 60 years of diplomatic relations, Prime Minister Modi’s visit underscores India’s unwavering commitment to its maritime neighbor, reinforcing the principles of respect, dialogue, peace, and prosperity that guide India’s foreign policy in its immediate neighborhood.
