Prime Minister Narendra Modi arrived in the Maldives on July 25, 2025, for a two-day state visit at the invitation of President Mohamed Muizzu. This visit marks a significant moment in India-Maldives relations, especially after recent tensions. Modi's trip follows his visit to the UK, where a historic trade deal was signed.
Background: Shifting Dynamics in India-Maldives Relations
The relationship between India and the Maldives has seen a tumultuous period, particularly after the election of President Mohamed Muizzu in November 2023, who campaigned on an "India Out" platform. This campaign aimed to reduce the Maldives' dependence on India, and Muizzu's initial policies led to strained bilateral ties. He broke tradition by visiting Turkey and China before India.
Tensions further escalated when some Maldivian officials made derogatory remarks against PM Modi, sparking backlash in India and leading to a decline in Indian tourist arrivals in the Maldives. However, both countries later decided to reconcile and restart diplomatic dialogues in 2024.
The Visit: Aims and Significance
PM Modi's visit aims to reset relations and reinforce India's "Neighbourhood First" policy and its vision for regional maritime security. It is the first state visit hosted by President Muizzu since he assumed office. Modi will be the guest of honor at the Maldives' 60th Independence Day celebrations, which also marks 60 years of diplomatic relations between the two nations.
During the visit, PM Modi is scheduled to meet President Muizzu, inaugurate India-backed development projects, and oversee the signing of key Memorandums of Understanding (MoUs). Discussions will focus on strengthening cooperation in trade, defense, and infrastructure.
Key Outcomes and Announcements
India has extended a Line of Credit (LoC) of ₹4,850 crores (approximately $565 million USD) to the Maldives. This credit line will support infrastructure projects aligned with the priorities of the Maldivian people. The two nations have also announced the initiation of negotiations for a Free Trade Agreement (FTA). This landmark initiative marks a significant step forward in strengthening the economic partnership between India and the Maldives. India will also support the Maldives in strengthening its defense capabilities.
PM Modi emphasized that the Maldives holds a special place in India's "Neighbourhood First" policy. He stated that India and the Maldives are neighbors, partners, and true friends who stand together in times of need.
Maldivian Perspective
President Muizzu has acknowledged India as the Maldives' "closest and most trusted partner". He praised India's role in regional development and highlighted the extensive collaboration between the two countries in various sectors, including security, trade, healthcare, and education. Muizzu affirmed that the Maldives will not do anything that would harm India's security interests.
Looking Ahead
PM Modi's visit signifies a significant turnaround in India-Maldives relations. Both countries are committed to strengthening their cooperation across various sectors through high-level exchanges. The visit underscores the importance of diplomacy, strategic interests, and shifting geopolitical realities in the Indian Ocean region.
