New Delhi, July 25: The state visit of Prime Minister Narendra Modi to the Maldives on July 25–26 marked a major step forward in bilateral relations, with both sides announcing a slew of agreements and project inaugurations across sectors including infrastructure, trade, housing, health, and digital connectivity.
Key Announcements:
The two countries deepened economic cooperation with the extension of a Line of Credit (LoC) worth ₹4,850 crore to the Maldives. Additionally, India announced a reduction in annual debt repayment obligations of the Maldives on earlier Government of India (GoI)-funded LoCs, offering fiscal breathing space to Male.
In a strategic economic move, both sides also launched negotiations on the India-Maldives Free Trade Agreement (IMFTA), a step that could significantly enhance trade volumes and market access in the region.
A symbolic gesture of enduring friendship came through the joint issuance of a commemorative stamp marking the 60th anniversary of the establishment of India-Maldives diplomatic relations.
Inaugurations and Handovers:
The visit also featured the handover of 3,300 social housing units in Hulhumale under India’s Buyer’s Credit programme, aimed at easing urban housing shortages.
Other major inaugurations included:
- Roads and drainage system projects in Addu City
- Six High Impact Community Development Projects (HICDPs) across the Maldives
- Handover of 72 vehicles and other technical equipment to Maldivian authorities to strengthen public service delivery.
Exchange of MoUs and Agreements:
Eight important MoUs and agreements were signed, reflecting a broadening of cooperation into new domains:
- LoC Agreement: Finalisation of the INR 4,850 crore Line of Credit to finance infrastructure and development projects.
- Amendatory Debt Agreement: Formal agreement to reduce annual debt service obligations of the Maldives on earlier Indian LoCs.
- FTA Terms of Reference: Signed document establishing the framework for India-Maldives Free Trade Agreement negotiations.
- Fisheries Cooperation MoU: Boosting collaboration in fisheries and aquaculture, a key economic sector for the island nation.
- Meteorological Science MoU: Agreement between India’s IITM and Maldives Meteorological Services to strengthen scientific cooperation on climate and weather forecasting.
- Digital Public Infrastructure MoU: Collaboration to share India’s population-scale digital solutions, under the Digital India framework, with the Maldives Ministry of Homeland Security and Technology.
- Pharmaceutical Standards MoU: Mutual recognition of Indian Pharmacopoeia (IP) by the Maldives to facilitate easier regulatory access for Indian medicines.
- Fintech Agreement: A network-to-network MoU between NPCI International (NIPL) and the Maldives Monetary Authority (MMA) to facilitate the adoption of India’s Unified Payments Interface (UPI) in the Maldives—marking a major leap in digital financial integration.
The visit comes amid evolving dynamics in the Indian Ocean region, and India’s multi-pronged engagement from infrastructure to fintech and climate cooperation, signals its commitment to being a reliable development partner. As New Delhi and Male deepen institutional linkages, the outcomes of this visit are likely to reinforce India’s strategic footprint in South Asia, while supporting Maldives in its developmental goals.
