Prime Minister Narendra Modi's recent state visit to the Maldives, from July 25 to 26, 2025, has marked a significant resurgence in the bilateral relations between India and the Maldives. The visit, at the invitation of Maldivian President Mohamed Muizzu, saw the two leaders engage in extensive discussions and the inking of key agreements aimed at bolstering cooperation across various sectors. This visit is especially significant as it coincides with the 60th anniversary of Maldives' independence and the 60th anniversary of the establishment of diplomatic relations between the two nations.

A major highlight of the visit was the announcement of a substantial line of credit of ₹4,850 crore (approximately $565 million USD) from India to the Maldives. This financial assistance is earmarked for funding crucial infrastructure and developmental projects throughout the island nation. The agreements signed also include one to ease the Maldives' annual debt repayment obligations on previous Indian-funded lines of credit.

In total, eight significant accords were executed between the two countries. These include:

• A framework to commence formal negotiations for an India-Maldives Free Trade Agreement (IMFTA).
• An agreement for the $565 million USD line of credit through India's Exim Bank for infrastructure development in the Maldives.
• A memorandum of understanding (MoU) on easing the repayment obligations of existing lines of credit granted by India.
• An MoU for further cooperation in the fields of fisheries and aquaculture.
• An agreement for the supply of medicines meeting the standards established by the Indian Pharmacopoeia Commission.
• An MoU on collaboration in monitoring climate and the environment.
• A network-to-network agreement between India's NPCI International Payment Limited (NIPL) and the Maldives Monetary Authority (MMA) to launch India's Unified Payments Interface (UPI) system in the Maldives.

During the visit, PM Modi emphasized India's commitment to supporting the Maldives in strengthening its defense capabilities. Both leaders jointly inaugurated a new building for the Ministry of Defence in Malé, constructed with India's financial assistance. Modi described the building as a "concrete building of trust" and a symbol of the strong partnership between the two countries. He also handed over 72 vehicles and equipment for use by the Maldives National Defence Force.

The talks also covered cooperation in development partnership, infrastructure support, capacity building, climate action, and health. Both countries aim to strengthen defense and maritime security cooperation, noting their collaboration under the Colombo Security Conclave. They also reviewed their economic partnership, with Modi highlighting that the proposed Free Trade Agreement and the Bilateral Investment Treaty would unlock new opportunities.

The agreements reflect India's "Neighbourhood First" policy and its commitment to the long-standing friendship with the Maldives. This visit has seemingly reversed the strain in bilateral ties that emerged earlier in President Muizzu's tenure. Muizzu, who once campaigned on an "India Out" platform, has now called India the "most trusted ally".

In addition to the agreements, PM Modi handed over 3,300 social housing units in Hulhumale, built under India's Buyers' Credit facilities. He also inaugurated a Roads and Drainage system project in Addu city and six High Impact Community Development Projects in the Maldives.

This visit underscores a renewed commitment to a comprehensive economic and maritime security partnership between India and the Maldives.