PM Modi Extends Credit of USD 565 Million to Maldives, Signs Pacts to Boost Trade & Defence
Staff, DigiTIMES. 
PM Modi Visits Maldives. Photo Credit: IANS live
PM Narendra Modi’s recent tour to UK is as much significant as his visit to the Maldives. The two-nation tour centers around strengthening bilateral ties on various fronts ranging from trade and commerce, technology partnerships and improving defence capabilities. The Maldives is politically more important with President Muizzu winning the 2023 elections on the backdrop of “India Out” campaign in the island nation.
PM Modi in a joint press meet with Maldives President Dr Mohamed Muizzu, “Maldives and India share historical ties to extent of the depth of an ocean. Both countries, this year, celebrate 60 years of diplomatic relations.”
On the release of commemorative stamp on July 25, 2025 as part of Maldives tour, PM Modi said the stamp features the traditional watercraft of both countries which reflects “we are not just neighbours, but fellow travellers,” Hindustan Times quoted Prime Minister Narendra Modi as saying.
Highlighting India’s commitment to neighbourhood first policy – in this case “regional commitment”, the PM said, “India is the Maldives’ closest neighbour. The Maldives holds an important place in both India’s ‘Neighbourhood First’ policy and its Vision MAHASAGAR. India is proud to be the Maldives’ most trusted friend.”
India’s long-term support to the Maldives in strengthening its defence capabilities reflects the depth of cooperation between two nations. “Mutual cooperation in the field of defence and security is a testament to mutual trust,” the Prime Minister added.
In a major boost to extending financial aid to the Maldives, PM Modi said, “We have decided to provide a line of credit of USD 565 million to the Maldives.”
Both countries have initiated discussions on a broader economic partnership to boost trade and commerce. “Talks on a free trade agreement between India and Maldives have started,” the PM said.
To strengthen investment ties, PM Modi added, “India and Maldives will work towards finalising a bilateral investment treaty.”
