India-Maldives
PM Narendra Modi’s recent visit to the Maldives marked a fresh chapter in bilateral ties.
Prime Minister Narendra Modi’s recent visit to the Maldives marked a fresh chapter in the relationship between the two neighbours. What made this visit even more special was that it came during the 60th anniversary of both the Maldives’ independence and the start of diplomatic relations between the two countries.
President Mohamed Muizzu, once seen as leaning towards China and known for his “India Out” stance during his election campaign, personally welcomed PM Modi at the Male airport. This warm gesture signalled a clear shift, a willingness to work closely with India again.
During the visit, both leaders agreed to begin talks on a Bilateral Investment Treaty and a Free Trade Agreement (FTA), something that has long been on the table. India also announced a big economic package -- ₹4,850 crore as a new line of credit -- to help with infrastructure and development projects in the Maldives. Importantly, India eased repayment conditions on earlier loans, cutting the Maldives’ annual debt payment by around 40%. This move will greatly reduce the country’s financial burden.
The visit also saw the signing of six agreements covering areas like fisheries, meteorology, digital public infrastructure, UPI payments, and healthcare standards. For ordinary travellers, the introduction of UPI payments means that soon Indians visiting the Maldives will be able to pay in rupees directly from their phones, whether at hotels, restaurants, or for local services.
PM Modi handed over 3,300 social housing units and 72 vehicles for the Maldivian defence and immigration departments. He also inaugurated road and drainage projects in Addu city and gave two Aarogya Maitri Health Cubes, advanced portable medical units capable of treating 200 casualties and supporting medical teams for up to 72 hours.
China has been trying to expand its influence in the Maldives through big infrastructure investments and strategic agreements. The Muizzu government had already signed an FTA with China last year, which came into effect in January 2025.
PM Modi’s visit, therefore, was a clear signal that India intends to remain the Maldives’ most trusted partner. Both leaders openly spoke about strengthening cooperation in trade, defence, and maritime security, areas where China has been trying to make inroads. President Muizzu, once seen as close to Beijing, praised India for always standing by the Maldives during crises, from natural disasters to the COVID-19 pandemic, showing a visible shift in his earlier stance.
For India, the location of Maldives is very strategic. Maintaining strong ties with the Maldives can help India keep a close watch on sea routes and counter China’s “string of pearls” strategy, which aims to build a network of ports and bases around India’s maritime neighbourhood.
Only a year ago, relations between the two countries had been tense, with critical remarks from Maldivian ministers and a dip in Indian tourist numbers due to a social media boycott campaign. But patient diplomacy from both sides has brought the two countries back on track.
