India and Maldives took a big step forward in strengthening their partnership on July 25, 2025. During Prime Minister Narendra Modi’s visit to Malé, both countries signed eight important agreements. These covered debt relief, digital payments, fisheries, and new infrastructure funding.
Key Outcomes of the Modi–Muizzu Meet
PM Modi and Maldivian President Mohamed Muizzu met in Malé to reaffirm their commitment to mutual growth and stability in the Indian Ocean. The two leaders signed:
- A ₹4,850 crore Line of Credit for infrastructure development in Maldives.
- Debt relief from India, reducing Maldives’ repayment burden by 40%.
- Introduction of UPI and RuPay in the Maldives to enhance digital transactions.
- New agreements in fisheries, trade facilitation, and local currency trade.
India’s “Neighbourhood First” Approach
PM Modi highlighted India’s continued support under the “Neighbourhood First” policy. He called the agreements a symbol of India’s enduring friendship with the Maldives.
India also handed over 3,300 social housing units built under previous aid projects. Vehicles for Maldives’ police and armed forces, along with medical aid kits, were also gifted.
UPI and RuPay Set to Change Transactions
The extension of Unified Payments Interface (UPI) to the Maldives is a major milestone. It will simplify transactions for Indian tourists and promote digital trade. Maldivians will also benefit from easier remittances and cross-border payment options.
RuPay cards will be accepted in Maldivian retail and hospitality sectors, reducing dependence on the US dollar.
Debt Relief Boosts Economic Stability
India agreed to ease Maldives’ loan repayments by 40%, allowing the country to focus on public services and economic recovery. This move was welcomed by the Maldivian government as a much-needed lifeline.
Partnership in Fisheries and Climate Resilience
The fisheries sector, a vital part of Maldives’ economy, will receive Indian support through technology transfer and training. India and Maldives also pledged to work together on climate change adaptation, disaster preparedness, and clean energy projects.
Infrastructure Development Gets a Boost
The new ₹4,850 crore Line of Credit will fund roads, ports, renewable energy plants, and health facilities. Joint inauguration of completed projects reflected a strong spirit of cooperation and trust.
60 Years of Diplomatic Relations
The visit coincided with the 60th anniversary of Maldives’ independence and India–Maldives diplomatic relations. President Muizzu praised India’s role in regional stability and welcomed deeper ties in all sectors.
Conclusion
“India and Maldives are actively strengthening their partnership by focusing on digital connectivity, economic aid, and climate goals, ensuring mutual benefit and a shared vision.”
