In a landmark gesture symbolising the depth and resilience of India-Maldives relations, Prime Minister Narendra Modi announced a substantial line of credit worth ₹4,850 crore (approximately USD 565 million) to the Maldives during his state visit on July 24, 2025. This announcement, made in the Maldivian capital of Male, coincided with the dual celebrations of the 60th anniversary of diplomatic ties between India and the Maldives and the 60th Independence Day of the Maldives.

Addressing a joint event alongside Maldivian President Mohamed Muizzu, PM Modi emphasised that the relationship between the two nations transcends modern history. “This year, India and Maldives are celebrating 60 years of diplomatic relations. But the roots of our relations are older than history and as deep as the sea,” he said, highlighting the profound cultural, geographic, and strategic bond between the neighbours.

To commemorate the occasion, the two leaders unveiled special stamps featuring traditional boats from both nations, a powerful representation of their shared maritime culture and mutual respect. Modi reflected, “This reflects that we are not just neighbours but also co-passengers.”

A Renewed Partnership for Growth and Stability

The newly announced ₹4,850 crore credit line will support multiple key development projects across the Maldives, aimed at transforming the nation’s infrastructure, energy systems, digital capacity, and public services. President Muizzu stated, “This credit line will be utilised for priority projects of my government across key sectors.”

Among the initiatives expected to be funded by the line of credit are:

• Urban infrastructure upgrades, including transport, roads, and housing

• Energy and water supply enhancements for remote islands

• Educational and healthcare sector advancements

• Digitalisation projects to modernise public services

These development efforts are aligned with President Muizzu’s national agenda and are anticipated to significantly improve the quality of life for Maldivians while strengthening bilateral interdependence.

India's 'Neighbourhood First' and 'MAHASAGAR' Vision

PM Modi reiterated India’s longstanding foreign policy principle of ‘Neighbourhood First’, reaffirming that the Maldives continues to be one of India’s most valued allies in the Indian Ocean region. He also mentioned India’s 'MAHASAGAR' (Maritime Neighbourhood) vision, which focuses on maritime cooperation and shared security across the region.

“India is Maldives' closest neighbour. Maldives holds an important place in India's ‘Neighbourhood First’ policy and ‘MAHASAGAR’ vision,” Modi said.

He also noted India’s role as the first responder during crises, such as the COVID-19 pandemic and natural disasters, by providing essential commodities, economic aid, and vaccines. “India has always stood with Maldives—be it in crisis or prosperity,” the Prime Minister added.

Strategic Significance of the Visit

Modi’s visit to Male, the capital city of the Maldives, carried immense diplomatic weight, especially as regional powers continue to vie for strategic dominance in the Indian Ocean.

His arrival was met with full ceremonial honours, including a 21-gun salute, signalling the importance the Maldives attaches to its relationship with India.

In addition to the credit line, Modi and Muizzu witnessed the signing of four MoUs and three agreements, covering:

• Cooperation in renewable energy

• Strengthening digital connectivity and cybersecurity

• Fisheries and sustainable ocean economy

• Cultural exchange and skill development programs

A Balancing Act for Maldives

While India has long been the Maldives' most reliable partner, President Muizzu's administration had earlier expressed intentions to diversify its foreign relations, including opening up to other global powers. However, Modi’s high-level visit and the generous development support signal India's determination to retain its strategic foothold in the Maldives and counterbalance other external influences.

The recent announcement also helps ease prior tensions and rebuild trust between the two nations. With both sides publicly committing to mutual growth, the partnership now appears to be entering a new phase of stability and long-term cooperation.

A Legacy of Generosity and Reliability

India has extended several lines of credit to the Maldives in the past decade, including:

• A $100 million grant in 2020 to develop water and sanitation systems

• A $400 million credit line in 2021 for the Greater Male Connectivity Project

• Assistance in the form of vaccines, food, and medical supplies during COVID-19

The latest announcement adds to this robust legacy, reinforcing India’s position as a trusted and generous neighbour with a deep commitment to the Maldives' progress.

Outlook: Strengthening People-to-People Bonds

Beyond state-level cooperation, both nations have been working on enhancing people-to-people engagement, including:

• Scholarships for Maldivian students at Indian universities

• Tourism partnerships to boost travel between the countries

• Cultural exchanges via dance, music, and literature

Modi’s statement that “we are not just neighbours but co-passengers” reflects an intent to deepen emotional and cultural ties, creating a relationship that is not just diplomatic but also deeply human.

Conclusion

The ₹4,850 crore credit line is not merely a financial gesture—it is a strategic investment in goodwill, regional stability, and shared prosperity. As the Maldives grapples with development challenges and navigates shifting geopolitical waters, India’s unwavering support and collaborative spirit underscore a partnership built on trust, friendship, and future-ready development.

As both countries celebrate 60 years of formal diplomatic ties, this moment marks a milestone and a springboard for deeper engagement in the decades to come.

India’s vision, as expressed by PM Modi, is clear: “In good times and bad, India will always stand by its friends.” With this gesture, India reaffirms its enduring commitment to the Maldives and the shared future of the Indian Ocean Region.

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