Modi's Visit Marks a New Chapter for India and Maldives

India and Maldives Reset Relations with New Aid

In a significant diplomatic turnaround, India and the Maldives have recalibrated their relationship, moving past recent tensions to reaffirm a deep and historic friendship. During a two-day visit to Male, Prime Minister Narendra Modi declared India the "most trusted" friend of the island nation, a stark contrast to the "India Out" campaign that marked President Mohamed Muizzu's rise to power.

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Economic and Defence Cooperation Deepens

This renewed partnership was cemented with concrete support and several key initiatives. The visit highlighted a strengthening of defence, infrastructure, and economic ties.

Key highlights of the cooperation include:

• A New Line of Credit: India announced a substantial Rs 4,850 crore (USD 565 million) line of credit to fund key infrastructure projects based on the Maldives' priorities. This move is also expected to reduce the Maldives' annual debt repayment to India by 40 percent.

• Defence Partnership: A new defence ministry building in Male, backed by India, was inaugurated. PM Modi described it as a "concrete building of trust" and reaffirmed India's commitment to the peace and stability of the Indian Ocean region.

• Infrastructure Handovers: PM Modi handed over 72 vehicles and various equipment to the Maldives National Defence Force.

• Civil Projects: Several other India-backed projects were jointly inaugurated, including roads and drainage systems in Addu city and 3,300 housing units in Hulhumale.

• Trade and Finance: Both leaders confirmed that negotiations for a bilateral investment treaty and a free trade agreement are underway. The growing success of India’s UPI system in the Maldives was also noted as a boost for tourism and retail.

A New Chapter in a Historic Friendship

The visit successfully reset the tone of the bilateral relationship. PM Modi emphasized that the friendship between the two nations is "older than history and as deep as the ocean," and will "remain bright and clear" regardless of circumstances. By reinforcing India's role as a 'first responder' and a key partner in the Maldives' development, the visit has opened a new, cooperative chapter for the two maritime neighbours.