New Delhi: On July 26, 2025, Prime Minister Narendra Modi made a landmark state visit to the Maldives, marking the 60th anniversary of diplomatic relations between India and the Maldives. This visit, described as “extremely productive” by PM Modi, was significant not only for its historical context but also for its role in strengthening bilateral ties strained by the “India Out” campaign. As the Guest of Honour at the Maldives’ 60th Independence Day celebrations, PM Modi became the first Indian Prime Minister to attend these festivities, underscoring the deep ties between the two nations.
A Milestone in Bilateral Relations
The year 2025 marks 60 years since India and the Maldives established diplomatic relations. The visit by PM Modi, the first by an Indian Prime Minister to the Maldives for its Independence Day celebrations, was a historic moment. Accompanied by Maldives President Dr. Mohammed Muizzu, PM Modi witnessed the Independence Day parade at Republic Square in Male. The event featured a vibrant display by the Maldivian National Defence Forces and local units, alongside cultural performances showcasing the Maldives’ achievements as a modern nation.
President Muizzu described the visit as a “defining moment” for bilateral relations, emphasizing India’s role as a crucial partner moving forward. In a social media post, he expressed gratitude to PM Modi, stating that the visit would shape the future of India-Maldives ties. The leaders also released commemorative stamps to celebrate the 60th anniversary of diplomatic relations, symbolizing the enduring partnership between the two nations.
Key Agreements Signed During the Visit
The visit resulted in the signing of several pivotal agreements aimed at bolstering cooperation across multiple sectors. These agreements reflect India’s commitment to supporting the Maldives’ development while fostering mutual economic and security interests.
1. Line of Credit (LoC) of ₹4,850 Crores
India announced a Line of Credit worth ₹4,850 crores to support infrastructure development in the Maldives. Notably, this is the first time India has extended such assistance in its own currency, marking a significant milestone in bilateral financial cooperation. The LoC is expected to fund critical infrastructure projects, enhancing the Maldives’ economic resilience and development.
2. Debt Repayment Relief
An amendatory agreement was signed to reduce the Maldives’ annual debt repayment obligations on Indian government-funded loans by 40%. This reduction lowers the annual repayment from $51 million to $29 million, easing the financial burden on the Maldives and strengthening its fiscal stability.
3. UPI Integration in the Maldives
A key agreement was signed to enable the implementation of India’s Unified Payments Interface (UPI) in the Maldives. This move is expected to revolutionize digital transactions in the Maldives, fostering financial inclusion and streamlining economic activities for businesses and citizens alike.
4. Free Trade Agreement (FTA) Negotiations
Both nations initiated negotiations for a proposed Free Trade Agreement (FTA), aiming to enhance economic ties and boost bilateral trade. The FTA is expected to create new opportunities for businesses, promote investment, and strengthen the geo-economic partnership between India and the Maldives.
5. Six Memoranda of Understanding (MoUs)
The visit saw the exchange of six MoUs in diverse fields, including:
- Fisheries and Aquaculture: To promote sustainable practices and enhance cooperation in marine resource management.
- Meteorology: To improve weather forecasting and climate resilience in the Maldives, a nation highly vulnerable to climate change.
- Digital Public Infrastructure: To support the Maldives in developing robust digital systems for governance and public services.
- Indian Pharmacopoeia: To collaborate on pharmaceutical standards, ensuring access to quality medicines.
- Other Sectors: Additional MoUs covered areas such as capacity building and technical cooperation, further deepening bilateral engagement.
Infrastructure Projects Inaugurated
PM Modi’s visit also marked the inauguration and handing-over of several key infrastructure projects funded by India, reinforcing its role as a reliable development partner.
1. 3,300 Social Housing Units in Hulhumale
Under India’s Buyers’ Credit facilities, 3,300 social housing units were inaugurated in Hulhumale. These units aim to address housing shortages and improve living standards for Maldivian citizens.
2. Roads and Drainage System in Addu City
A roads and drainage system project in Addu City was handed over, enhancing urban infrastructure and improving connectivity in the region.
3. Aarogya Maitri Health Cube (BHISHM) Sets
Two Aarogya Maitri Health Cube (BHISHM) sets were provided to the Maldives, strengthening its healthcare infrastructure and emergency response capabilities.
Strategic and Geopolitical Significance of the Maldives for India
The Maldives holds immense strategic and geopolitical importance for India, making PM Modi’s visit a critical step in reinforcing India’s regional influence.
1. Geopolitical Importance
The Maldives is a key component of India’s ‘Neighborhood First’ policy and Vision MAHASAGR (Maritime Amity, Harmony, and Security for Growth and Resilience). Located in the Indian Ocean, the Maldives serves as a vital partner in India’s efforts to promote regional stability and cooperation.
2. Strategic Positioning
Geographically, the Maldives is positioned like a “toll gate” between major Indian Ocean chokepoints, including the Gulf of Aden, the Strait of Hormuz, and the Strait of Malacca. This strategic location makes it a critical player in maritime security and regional power dynamics.
3. Geo-Economic Importance
The Maldives lies along major commercial Sea Lines of Communication (SLOCs), through which 50% of India’s external trade and 80% of its energy imports transit. Ensuring the security and stability of these SLOCs is vital for India’s economic interests.
4. Security and Counterterrorism
The Maldives is a key partner in countering security threats such as terrorism and piracy in the Indian Ocean Region (IOR). Both nations reaffirmed their commitment to strengthening defense and maritime security cooperation during the visit. PM Modi thanked President Muizzu for his strong condemnation of the Pahalgam terror attack and for the Maldives’ solidarity in India’s fight against terrorism.
5. Countering China’s Influence
The Maldives plays a crucial role in countering China’s ambitious “String of Pearls” strategy in the IOR, which aims to establish a network of strategic ports and bases. As a key participant in the Colombo Security Conclave, the Maldives collaborates with India to ensure regional security and stability.
Strengthening Cultural and Diplomatic Ties
PM Modi’s participation as the Guest of Honour at the Maldives’ 60th Independence Day celebrations was a testament to the deep cultural and diplomatic ties between the two nations. His presence at the parade and cultural performances highlighted the shared values and mutual respect that define India-Maldives relations. The release of commemorative stamps further symbolized the enduring partnership and commitment to future collaboration.
Overcoming Past Challenges
The visit was particularly significant given the strained bilateral ties caused by the “India Out” campaign in recent years. PM Modi’s engagement with President Muizzu and the Maldivian government signaled a renewed commitment to rebuilding trust and cooperation. The agreements and projects announced during the visit demonstrate a forward-looking approach to addressing past challenges and fostering a stronger partnership.
Conclusion
Prime Minister Narendra Modi’s state visit to the Maldives on July 26, 2025, marked a historic milestone in India-Maldives relations. As the Guest of Honour at the 60th anniversary of Maldives’ independence, PM Modi’s participation underscored India’s commitment to its maritime neighbor. The signing of agreements, including a ₹4,850 crore Line of Credit, UPI integration, and FTA negotiations, reflects the deepening economic and strategic partnership. The inauguration of infrastructure projects and the exchange of MoUs further solidify India’s role as a key development partner. With its strategic location in the Indian Ocean, the Maldives remains a vital ally for India in ensuring regional security, countering terrorism, and promoting economic growth. This visit not only celebrated 60 years of diplomatic ties but also laid the foundation for a stronger, more resilient partnership in the years to come.
FAQs
1. What was the purpose of PM Narendra Modi’s visit to the Maldives on July 26, 2025?
PM Modi visited the Maldives to attend the 60th anniversary celebrations of Maldives’ independence as the Guest of Honour and to strengthen bilateral ties. The visit marked 60 years of diplomatic relations, with key agreements signed and infrastructure projects inaugurated to enhance cooperation in economic, security, and digital sectors.
2. What agreements were signed during PM Modi’s visit to the Maldives?
Key agreements included a ₹4,850 crore Line of Credit, UPI implementation, a 40% reduction in Maldives’ debt repayment on Indian loans, and the start of Free Trade Agreement negotiations. Six MoUs were also exchanged in fields like fisheries, meteorology, digital infrastructure, and Indian pharmacopoeia.
3. What infrastructure projects were inaugurated during the visit?
PM Modi inaugurated 3,300 social housing units in Hulhumale under India’s Buyers’ Credit, a roads and drainage system in Addu City, and handed over two Aarogya Maitri Health Cube (BHISHM) sets to bolster Maldives’ healthcare and infrastructure.
4. Why is the Maldives strategically important to India?
The Maldives is vital for India’s ‘Neighborhood First’ policy and Vision MAHASAGR, acting as a “toll gate” in the Indian Ocean near key chokepoints. It lies along major Sea Lines of Communication, handling 50% of India’s trade and 80% of energy imports, and is a key partner in countering terrorism, piracy, and China’s “String of Pearls” strategy.
5. How did the visit address past tensions in India-Maldives relations?
The visit, the first since the “India Out” campaign strained ties, signaled a renewed commitment to trust and cooperation. PM Modi’s participation in the Independence Day celebrations and agreements with President Muizzu underscored a forward-looking partnership, with both leaders emphasizing mutual growth and solidarity.
