On July 25, 2025, Indian Prime Minister Narendra Modi visited the Maldives to enhance bilateral relations and support the island nation's development. During the two-day visit, India announced a $565 million line of credit to fund infrastructure and development projects in the Maldives. This financial assistance aims to bolster the Maldivian economy and strengthen regional cooperation.
In addition to the financial support, India and the Maldives initiated formal discussions for a Free Trade Agreement (FTA) and an investment treaty. These agreements are intended to promote economic collaboration and mutual prosperity between the two nations. The leaders also signed several Memorandums of Understanding (MoUs) covering areas such as fisheries, health, tourism, and digital development, reflecting a comprehensive approach to bilateral cooperation.
Prime Minister Modi's visit also included the virtual inauguration of upgrades at Hanimadhoo International Airport, a project funded by India. The visit coincided with the Maldives' 60th anniversary of independence, underscoring the enduring partnership between the two countries.
These initiatives signify a renewed commitment to strengthening ties and fostering mutual growth, highlighting the importance of collaboration in the Indian Ocean region.