Prime Minister Narendra Modi held talks with Maldives President Mohamed Muizzu on Friday evening. The meeting focused on consolidating cooperation in areas of trade, defence, and infrastructure, marking a major turnaround in the ties after a spell of unease.

#WATCH | Malé | Outcomes of PM Narendra Modi’s State Visit to Maldives:

Extension of Line of Credit (LoC) of Rs 4,850 crores to Maldives
Reduction of annual debt repayment obligations of Maldives on Gol-funded LoCs
Launch of India-Maldives Free Trade Agreement (IMFTA)… pic.twitter.com/t0zhoHhuRX

— ANI (@ANI) July 25, 2025

PM Modi landed in Male on Thursday morning to a warm welcome, with Muizzu and a number of top ministers of his government receiving the prime minister at the Velana International Airport, reflecting the importance Male attached to the trip. Later, he was accorded a colourful ceremonial welcome and a guard of honour at the iconic Republic Square.

“Deeply touched by the gesture of President Muizzu to come to the airport to welcome me. I am confident that India-Maldives friendship will scale new heights of progress in the times to come,” Modi said in a social media post.

According to news agency PTI, Prime Minister Modi held a one-on-one meeting before settling down for delegation-level talks. 

The turnaround in the bilateral ties assumes significance as Muizzu, known to be close to China, came to power in the island nation in November 2023 on the back of an India Out campaign. His policies in the first few months of his presidency resulted in severe strain in the ties. Within hours of his oath, he had demanded the withdrawal of Indian military personnel from his country. India subsequently replaced the personnel with civilians.

The Indian military personnel were deployed to the Maldives to maintain and operate two helicopters and an aircraft, which were used for humanitarian and rescue operations. It is widely believed that New Delhi’s sustained efforts, including its assistance to the island nation to deal with its economic woes, helped bring the relations back on track.

Maldives is one of India’s key maritime neighbours in the Indian Ocean region, and the overall bilateral ties, including in areas of defence and security, witnessed an upward trajectory under the previous governments in Male.

Outcomes of PM Narendra Modi’s State Visit to Maldives:

Extension of Line of Credit (LoC) of Rs 4,850 crores to Maldives

Reduction of annual debt repayment obligations of Maldives on Gol-funded LoCs

Launch of India-Maldives Free Trade Agreement (IMFTA) negotiations

Joint issuance of commemorative stamp on 60th anniversary of establishment of India-Maldives diplomatic relations

Handing over of 3,300 social housing units in Hulhumale under India’s Buyers’ Credit facilities

Inauguration of Roads and Drainage system project in Addu city

Inauguration of 6 High Impact Community Development Projects in Maldives

Handing-over of 72 vehicles and other equipment