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Maldives President Muizzu expresses gratitude to India for crucial economic assistance, highlighting the strong bilateral ties and support for national development.
Maldivian President Mohamed Muizzu on Friday, July 25, 2025, expressed gratitude to India for its crucial support in addressing the country’s economic difficulties and liquidity issues.
He also noted that he and Indian Prime Minister Narendra Modi have established a clear roadmap for enhanced bilateral cooperation in the future.
Mr. Muizzu made his statement on the first day of Prime Minister Modi’s two-day state visit to the Indian Ocean archipelago, which followed Mr. Modi’s trip to the United Kingdom. Relations between the two countries have seen a gradual reset since Mr. Muizzu’s visit to India in October 2024, after a period of significant strain following his election the previous year.
Prime Minister Modi’s visit is widely regarded as a sign of the strengthening ties between India and one of its key neighbours. In his media address in Malé, he emphasized the importance of the Maldives in India’s ‘Neighbourhood First’ policy. Additionally, in a social media post marking the release of a commemorative stamp celebrating 60 years of India-Maldives diplomatic relations, he described it as a tribute to “a very cherished friendship.”
Following discussions between the leaders, the two sides exchanged four Memoranda of Understanding (MoUs) and signed three agreements aimed at enhancing cooperation across several key sectors. These include fisheries, aquaculture, tourism, the environment, digital solutions, and the establishment of terms of reference to initiate negotiations for a Free Trade Agreement.
Highlighting the continued importance of economic cooperation in their bilateral relationship, India has agreed to provide a new Line of Credit (LoC) worth ₹4,850 crore to the Maldives, aimed at helping the island nation address its persistent twin deficit challenge. Notably, this is the first time such credit is being extended in Indian Rupees. “We anticipate that numerous infrastructure projects will be implemented through this LoC,” Foreign Secretary Vikram Misri stated at a press conference in Malé.
Notably, the two countries signed an amendatory agreement to ease the Maldives’ annual debt repayment obligations. As stated by Mr. Misri during a press conference, the revised terms reflect a substantial 40% reduction. Under the new arrangement, Malé will now pay $29 million per year—down from the original $51 million—as it repays a previous $800 million Line of Credit extended by India.
Observers of India-Maldives relations view the revitalized partnership between the two nations as both essential and encouraging. Ahmed Shaheed, former Foreign Minister of the Maldives and now a law professor at the University of Essex in the U.K., described Prime Minister Modi’s visit as “arguably the most impactful visit to the Maldives by an Indian leader to date.”
This marks a significant improvement in bilateral relations, which had deteriorated considerably under the current Maldivian government due to an initial Indophobic stance. It is heartening to witness the revival of this longstanding partnership. Both Prime Minister Modi and President Muizzu deserve commendation for their efforts in restoring ties, a move that aligns with the long-term strategic interests of both nations.
On Sunday, Mr. Modi is scheduled to meet with the Indian community in Malé, followed by his participation in a special event commemorating the 60th Independence Day of the Maldives.
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