India–Maldives Relations: PM Modi’s 2025 Visit to Male

Development Projects

India handed over 3,300 social housing units in Hulhumalé under its Buyer’s Credit facilities

• These housing units, constructed with financial assistance from India’s EXIM Bank under Buyer’s Credit arrangements, are a part of India’s commitment to improving the quality of life for Maldivian citizens. This initiative supports urban development and addresses housing shortages in the capital region.

PM Modi inaugurated the roads and drainage system project in Addu City

• The project, implemented with Indian assistance, aims to enhance urban connectivity and climate resilience in southern Maldives. It also demonstrates India’s focus on supporting regionally balanced infrastructure development in the archipelago.

PM Modi inaugurated six High-Impact Community Development Projects (HICDPs)

• These projects cover essential areas such as education, health, sanitation, and local governance. HICDPs are a key pillar of India’s development cooperation model and are implemented in close collaboration with Maldivian local councils and communities.

Economic Relations

1. Announcement of FTA Talks

• Maldivian President Mohamed Muizzu, during a joint press conference with Indian Prime Minister Narendra Modi in Malé, formally announced the commencement of negotiations for the India–Maldives Free Trade Agreement (IMFTA).
• The launch of FTA negotiations marks a significant milestone in economic diplomacy between the two nations and reflects a mutual desire to deepen trade and investment cooperation.

2. India extended a Line of Credit (LoC) worth ₹4,850 crore to the Maldives

• This substantial financial assistance aims to support the island nation’s economic recovery, infrastructure projects, and developmental needs. It is a reaffirmation of India’s commitment to being Maldives’ foremost development partner.

3. India reduced the annual debt repayment burden on Maldivian government-funded LoCs

• By easing repayment obligations, India provided crucial relief to the Maldives in addressing its liquidity crisis, which has been exacerbated by rising external debt and economic slowdown due to the COVID-19 aftermath and global supply chain disruptions.

4. Both countries agreed to work towards finalizing a Bilateral Investment Treaty (BIT)

• During the bilateral discussions in Malé, India and the Maldives agreed to work towards finalizing a Bilateral Investment Treaty (BIT).
• The objective of the BIT is to promote and protect cross-border investments by creating a stable, transparent, and legally binding framework for investors from both countries.

         Expected outcomes of the proposed BIT include:

• Providing legal safeguards such as protection against expropriation, fair and equitable treatment, and non-discrimination for investors.
• Enhancing investor confidence and facilitating the flow of Foreign Direct Investment (FDI) into sectors like infrastructure, hospitality, digital services, logistics, and renewable energy.
• Enabling structured dispute resolution mechanisms and aligning with international best practices for investment governance.

Defence

1. India pledged continued support to strengthen the Maldives’ defence capabilities: PM Modi assured that India will remain a steadfast partner in enhancing the capacity of Maldivian security forces, particularly in maritime surveillance and coastal security, as part of ensuring peace in the Indian Ocean Region.
2. India handed over 72 vehicles to the Maldivian Defence Ministry: The logistical support enhances operational readiness and mobility of the Maldivian armed forces and underlines India’s role as a primary security provider in the region.

Technology

1. Multiple Memorandums of Understanding (MoUs) were signed in the fields of digital transformation and allied sectors

• These agreements aim to strengthen Maldives’ digital public infrastructure and promote cooperation in fintech, cybersecurity, e-governance, and digital capacity building.

Green Diplomacy

1. PM Modi and President Muizzu jointly launched green diplomacy initiatives to address climate change

• • Both leaders planted saplings as part of India’s ‘Ek Ped Maa Ke Naam’ campaign and supported the Maldives Government’s pledge to plant five million trees, emphasizing shared responsibility in combating climate change and environmental degradation.