Indian Prime Minister Narendra Modi concluded a two-day state visit to the Maldives on Saturday, aiming to restore strong ties with the strategically located island nation. During the trip, Modi offered key infrastructure support and financial aid, signaling India’s intent to counter growing Chinese influence in the region.
Relations between the two nations had cooled after President Mohamed Muizzu came to power in 2023 on an anti-India campaign. He quickly pushed for the removal of Indian military personnel stationed in the Maldives for search-and-rescue operations. However, in recent months, Muizzu has softened his stance and acknowledged India’s longstanding partnership.
Modi announced a $565 million credit line to help the Maldives manage its economic crisis and foreign exchange shortages. India also cut yearly repayments on an earlier loan from $51 million to $29 million. Both countries discussed a future free trade agreement, which could further open up trade and investment opportunities.
During his stay, Modi also inaugurated a new Defence Ministry headquarters and multiple India-funded projects. These included major road networks and a 4,000-unit housing scheme. Muizzu stated the credit line would help strengthen Maldives’ security forces and improve key public services like healthcare and education.
As Modi departed Male following the Maldives’ 60th Independence Day celebrations, both leaders shared warm messages on social media. Muizzu called the visit “a clear path for future cooperation,” while Modi said India remains committed to supporting the people of the Maldives. The visit highlights the island’s critical role in the regional power balance between India and China.