Prime Minister Narendra Modi's recent visit to the Maldives underscores the enduring importance of friendship in India's foreign policy, particularly with its neighbors. Arriving in Malé on July 25, 2025, Modi was greeted by President Mohamed Muizzu, marking the first state visit hosted by Muizzu since assuming office in November 2023. The visit, which follows Modi's trip to the UK where a historic trade deal was signed, holds significant weight as it coincides with the Maldives' 60th Independence Day and the 60th anniversary of India-Maldives diplomatic relations.
The Prime Minister's presence as the Guest of Honour at the Independence Day celebrations highlights India's commitment to strengthening bilateral ties amidst evolving regional dynamics in the Indian Ocean. This visit is viewed as a potential turning point in relations, especially after recent unease and a perceived pro-China tilt by the current Maldivian administration.
During the visit, Modi engaged in extensive discussions with President Muizzu, focusing on bolstering cooperation in trade, defense, and infrastructure. Key outcomes include India extending a Line of Credit (LoC) of ₹4,850 crores to the Maldives and a reduction in the island nation's annual debt repayment obligations on GoI-funded LoCs. Furthermore, both countries announced the initiation of negotiations for a Free Trade Agreement (IMFTA), signaling a strong intent to deepen economic ties.
Modi emphasized the deep-rooted historical and cultural connections between India and the Maldives, stating that the relationship is "older than history and as deep as the sea". He highlighted that people from Lothal traveled to the Maldives' Lhaviyani and Noonu Atolls during the Indus Valley civilization. The release of commemorative stamps featuring traditional boats of both nations further symbolized this shared heritage and the idea of being "co-passengers".
Several concrete initiatives were launched during the visit, including the handover of 3,300 social housing units in Hulhumale, the inauguration of road and drainage projects in Addu City, and the handover of 72 vehicles and other equipment. India also gifted BHISHM (Bharat Health Initiative for Sahyog Hita & Maitri) cubes to the Maldives, demonstrating its commitment to supporting the nation's health infrastructure.
President Muizzu acknowledged the significance of the visit, stating it was a "great honor and privilege" to receive Prime Minister Modi. He also highlighted the signing of four MoUs and three agreements in key areas, including the Line of Credit agreement for $565 million, which will be used for priority projects.
The visit underscores India's "Neighbourhood First" policy and its vision of Security and Growth for All in the Region (SAGAR), with the Maldives holding a special place in these initiatives. India has been a consistent first responder for the Maldives, providing assistance during natural disasters, supplying essential commodities, and delivering vaccines during the COVID-19 pandemic. Moreover, India has been instrumental in strengthening the Maldives' defense capabilities, providing training opportunities and equipment.
Despite recent shifts in Maldivian foreign policy, the fundamental importance of the relationship with India remains clear. As Modi stated, India will always support the Maldives in strengthening its defense capabilities. The initiation of a Free Trade Agreement and the various development projects underway signal a renewed commitment to economic partnership and regional stability. The Prime Minister's visit reaffirms that for India, friendship with its neighbors remains a paramount priority, guiding its engagement and cooperation in the region.
