India and the Maldives on Friday exchanged MoUs in the presence of Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu, in Malé.
Speaking during the ceremony, PM Modi said: “India is the closest neighbour to Maldives. Maldives holds a unique place in India’s Neighbourhood First policy and Vision MAHASAGAR. India is proud to be Maldives’ most trusted friend. Be it disaster or pandemic, India always stands as a first responder.”
“We have decided to provide a line of credit of $565 million to Maldives.” he said, adding that “talks on a free trade agreement between India and Maldives have started.”
The Maldivian President said that both sides had signed four Memorandums of Understanding and three key agreements, including a fresh line of credit from India worth $565 million (approximately Rs 4,850 crore). This, he said, would be utilised for priority infrastructure and social projects of his government.
#WATCH | Malé | Outcomes of PM Narendra Modi’s State Visit to Maldives:
Extension of Line of Credit (LoC) of Rs 4,850 crores to Maldives
Reduction of annual debt repayment obligations of Maldives on Gol-funded LoCs
Launch of India-Maldives Free Trade Agreement (IMFTA)… pic.twitter.com/t0zhoHhuRX— ANI (@ANI) July 25, 2025
He thanked India for continuing its cooperation with the Maldives. “Appreciate India’s pivot support for the Maldives’ economy. India is a principal partner in the Maldives’ health sector. India, Maldives sign 4 MoUs & 3 Agreements. I wish both our nations’ growth and prosperity,” Muizzu said.
The visit also resulted in the following deliverables:
- Initiation of India-Maldives Free Trade Agreement (IMFTA) negotiations
- Reduction in Maldives’ annual debt repayment obligations on existing Government of India-funded LoCs
- Handing over of 3,300 social housing units in Hulhumale
- Inauguration of the Roads and Drainage system project in Addu City
- Launch of six High-Impact Community Development Projects
- Delivery of 72 vehicles and equipment to Maldives for institutional support
“This visit coincides with two cherished occasions,” Muizzu said, referring to the dual celebration of independence and diplomatic ties.
