New Delhi: Prime Minister Narendra Modi’s two-day visit to the Maldives on July 25-26, 2025, culminated in eight major agreements on trade, defense, and digital cooperation, signaling a reset in bilateral ties as President Mohamed Muizzu hailed Modi as a “wonderful person” and trusted partner.
During his third official visit to the Maldives, Prime Minister Narendra Modi held extensive talks with President Mohamed Muizzu in Malé, marking the 60th anniversary of the Maldives’ independence and diplomatic relations with India. The leaders signed eight agreements, including a ₹4,850 crore ($565 million) line of credit to support infrastructure projects, a 40% reduction in Maldives’ annual debt repayments to India, and the launch of negotiations for an India-Maldives Free Trade Agreement (IMFTA). Other pacts covered fisheries, digital transformation, meteorology, and the introduction of India’s Unified Payments Interface (UPI) in the Maldives.
Modi, welcomed with a ceremonial guard of honor at Velana International Airport, attended the Independence Day celebrations as the guest of honor on July 26, sitting alongside Muizzu for nearly an hour. The leaders jointly inaugurated a new Ministry of Defence building, 3,300 social housing units in Hulhumale, and road and drainage projects in Addu City, all funded by India. Additionally, 72 vehicles were handed over to the Maldives National Defence Force and immigration authorities.
The visit marks a significant shift in Muizzu’s stance, who, after taking office in November 2023 on an “India Out” campaign, had initially strained ties by demanding the withdrawal of Indian military personnel. Relations warmed after India’s economic aid, including a $400 million currency swap and $100 million T-bill rollover in 2024, helped avert a debt default in Maldives’ $7.5 billion economy. Muizzu condemned a recent terrorist attack in Pahalgam, expressing solidarity with India’s counterterrorism efforts.
President Muizzu praised Modi, stating, “He is a wonderful person who is very fond of building relationships with India’s neighbors. India has long been Maldives’ closest and most trusted partner.” He highlighted India’s role in tourism, noting, “With PM Modi’s visit, people-to-people exchanges will greatly increase.” Former Maldives President Mohamed Nasheed emphasised the strategic importance of the visit, saying, “A formal trade agreement would add structure and predictability, fostering cooperation in shipping, logistics, and sustainable marine practices.”
Foreign Secretary Vikram Misri dismissed a deleted social media post by Muizzu’s brother-in-law calling Modi a “terrorist,” stating, “Our ties are strong enough to withstand passing remarks.” Bilateral trade, valued at $548 million in 2023, has doubled since 2020, with India as a key tourism contributor, including the one-millionth tourist in 2025.
Modi’s visit has reinvigorated India-Maldives relations, with economic aid and strategic pacts paving the way for deeper cooperation. As Maldives navigates economic challenges and regional dynamics, India’s reaffirmed role as a reliable partner signals a robust future for bilateral ties, with Muizzu hinting at a reciprocal visit to India soon.