Maldivian President Muizzu Thanks India for Key Economic Support, Highlights Clear Path Ahead with PM Modi

Maldivian President Mohamed Muizzu, on Friday, July 25, 2025, expressed gratitude to India for its key role in helping the Maldives tackle its economic and liquidity challenges.

He noted that he and Indian Prime Minister Narendra Modi had “charted a clear path” for future cooperation.

Modi’s Visit Marks Improved Relations

This acknowledgment came during the first day of PM Modi’s two-day state visit to the Maldives, following his trip to the UK.

The visit marks a renewed phase in bilateral ties, which had experienced strain after President Muizzu assumed office. Since Mr. Muizzu’s visit to India in October 2024, relations have been gradually stabilizing.

Speaking in Male, PM Modi highlighted the significance of the Maldives in India’s “Neighbourhood First” policy. Referring to the release of a commemorative stamp marking 60 years of India-Maldives friendship, he said it symbolized “a very cherished friendship.”

Agreements Signed and Financial Assistance Extended

After bilateral discussions, the two leaders oversaw the exchange of four Memoranda of Understanding (MoUs) and three agreements.

These included partnerships in fisheries, aquaculture, tourism, environment, digital solutions, and preparations to begin Free Trade Agreement negotiations.

India committed a new Line of Credit (LoC) worth ₹4,850 crore, marking the first such credit extended in Indian Rupees to the Maldives. “We expect several infrastructure projects to be carried out using this LoC,” said Foreign Secretary Vikram Misri.

Additionally, an amendatory agreement was signed, reducing Maldives’ annual debt repayments from $51 million to $29 million on an earlier $800 million LoC from India. Mr. Misri highlighted this as a “sharp 40%” reduction.

Observers Laud Renewed Engagement

Former Maldivian Foreign Minister Ahmed Shaheed, now a professor in the UK, called the visit “arguably the most impactful visit to Maldives by an India leader ever.”

He noted the remarkable turnaround in relations and emphasized the importance of restoring the historic ties between the two nations.

Modi Attends Independence Day Celebrations

On Saturday, Prime Minister Modi was the guest of honour at the Maldives’ 60th Independence Day celebrations held at Republic Square in Male.

This marked the first time an Indian Prime Minister attended such an event in the Maldives and the first foreign leader at head of government level hosted by President Muizzu.

Modi, seated beside President Muizzu, watched a 50-minute program featuring a military parade and cultural performances. His delegation included External Affairs Minister S. Jaishankar, National Security Advisor Ajit Doval, and Foreign Secretary Vikram Misri.

As Modi departed for India, President Muizzu called the visit “a defining visit that sets a clear path for the future of Maldives-India relations.”

Commitment to Economic Development

Speaking to reporters, Muizzu emphasized the critical role of Indian tourism and said Modi’s visit would enhance people-to-people exchanges.

He praised India’s support, stating, “We all have seen how India has helped the Maldives in the past, and nobody will doubt how India will be a very crucial partner going forward.”

At a state banquet on Friday night, President Muizzu acknowledged the long-standing diplomatic and cultural ties between the two nations.

Referring to the Indian Ocean as a symbol of this bond, he emphasized their shared history as neighbors and traders.

He also reiterated the Maldives’ commitment to building a dynamic economy, empowering youth, and ensuring peace in the region—goals for which India’s partnership remains essential.

PM Modi Highlights Strategic Cooperation

During his visit, PM Modi described India as the Maldives’ “most trusted” partner. He reiterated support for the Maldivian people and expressed India’s commitment to shared prosperity and sustainable development.

“Our relationship continues to grow, shaped by people-to-people ties and cooperation in various sectors,” Modi stated.

On Saturday, Modi met key Maldivian leaders including Vice President Uz Hussain Mohamed Latheef, Parliament Speaker Abdul Raheem Abdulla, and former President Mohamed Nasheed.

He praised the formation of the India-Maldives Parliamentary Friendship Group and underlined India’s support for capacity building.

He said of his meeting with Nasheed: “He has always been a strong advocate of a deeper India-Maldives friendship.”

Engagement with the Indian Community

PM Modi also interacted with the Indian community in Male, acknowledging their contributions to strengthening bilateral ties.

The Ministry of External Affairs said the visit reaffirmed mutual commitments to deepen cooperation, rooted in shared democratic values and a vibrant people-to-people connection.