India and Maldives share a close relationship, characterized by economic cooperation and development assistance. India has been actively involved in various infrastructure projects in the Maldives, contributing to the island nation's growth and development. These projects span various sectors, including connectivity, healthcare, and maritime security.
Here are some major infrastructure projects undertaken by India in the Maldives:
Greater Malé Connectivity Project (GMCP): This is a flagship infrastructure project that aims to connect Malé with three neighboring islands – Villingili, Gulhifalhu, and Thilafushi – via a 6.8 km bridge and causeway system. Funded through a USD 400 million Line of Credit (LoC) and a USD 100 million grant from India, the project is expected to boost economic activity and improve the lives of Maldivian citizens. The contract was awarded to AFCONS in August 2021, and the project is being monitored regularly by a Joint Project Monitoring Committee.
Addu Development Projects: India has invested approximately $220 million in Addu city in recent years. Key projects include the $80 million Addu reclamation and shore protection initiative and a $70 million redevelopment of roads and drainage. These projects aim to boost tourism and economic growth in the region. In August 2024, India and Maldives inaugurated several Indian-funded infrastructure projects in Addu City.
Hanimaadhoo International Airport Redevelopment: India is undertaking the redevelopment of Hanimaadhoo International Airport, which will include extending the runway and upgrading airport infrastructure. This project is expected to enhance air connectivity and boost tourism in the northern part of the Maldives.
High Impact Community Development Projects (HICDP): Implemented under the Indian grant assistance scheme, these projects focus on addressing local needs and bringing lasting socio-economic benefits to communities. In May 2025, India and the Maldives signed 13 MoUs for projects to be implemented under HICDP Phase III, with a total grant of MVR 100 million (approximately ₹55,28,47,552). These projects primarily aim to enhance ferry services, expand connectivity, and uplift community livelihoods. Till date, 56 such projects have been approved, of which 14 have been completed and inaugurated.
"Ekatha" MNDF Harbour Project: This project, located on Uthuru Thila Falhu (UTF) Island, aims to improve Maldives' maritime security infrastructure, enabling better surveillance and monitoring capabilities. India has committed to supplying radar systems and other critical equipment to the Maldives as part of this initiative. The two countries reaffirmed their shared commitment to the Comprehensive Economic and Maritime Security Partnership during President Muizzu's visit to India in October. Significant progress has been made on the MNDF building project, with an announcement expected soon.
Defense Cooperation: India-Maldives Defence Cooperation extends to Joint Exercises, Maritime Domain Awareness, gifting of hardware, and infrastructure development. Key projects in the defence sector include the Composite Training Centre (CTC) for MNDF, the Coastal Radar System (CRS), construction of a new Ministry of Defence Headquarters.
In addition to these major projects, India provides financial assistance to the Maldives through currency swap arrangements and subscription to Maldivian treasury bills. These measures have helped improve the Maldives' foreign exchange position and avoid difficult economic outcomes. India has extended comprehensive financial assistance, including a nearly fully utilised USD 400 million currency swap line and a bilateral currency swap agreement worth ₹30 billion. India is also exploring new areas of cooperation with the Maldives, including renewable energy and fisheries.
