The Maldives and India on Friday signed eight agreements, including an agreement to initiate work towards a Free Trade Agreement (FTA) and a new $565 million line of credit (LOC) for development projects, during Indian Prime Minister Narendra Modi’s two-day state visit to the island nation.
The agreements were exchanged at a ceremony at the President’s Office in Malé, attended by Modi, President Mohamed Muizzu and senior officials from both countries.
The $565 million LOC includes $450 million remaining from an $800 million LOC arranged during the administration of former President Ibrahim Mohamed Solih, leaving $115 million in fresh funds. An agreement was also signed to facilitate the repayment of funds already used from the previous LOC.
Other agreements signed on Friday cover cooperation in fisheries and livestock farming, climate and environment, digital transformation, import of medicines, and the Maldives Monetary Authority’s (MMA) partnership with India to launch the Unified Payments Interface (UPI) service.
Speaking after bilateral talks, Modi said India “will always provide assistance to the Maldives as it has done in the past.”
The agreements mark a significant step in strengthening relations between the two neighbours after months of strain. Modi’s visit coincides with the Maldives’ 60th independence anniversary and the anniversary of the establishment of diplomatic ties with India.
Earlier on Friday, Modi was formally welcomed by Muizzu at Republic Square in Malé with a 21-gun salute and a guard of honour by the Maldives National Defence Force.
This is Modi’s first visit to the Maldives since Muizzu took office in 2023. The visit is widely viewed as a key step in resetting ties after Muizzu, seen as favouring closer relations with China, campaigned for the withdrawal of Indian military personnel stationed in the Maldives. India has since removed its troops, and both sides have signalled a willingness to re-engage.