What happened?
On 25 July 2025, PM Narendra Modi held bilateral talks with Maldivian President Mohamed Muizzu in Male during his two-day state visit. The two leaders reviewed the full range of India-Maldives relations and signed several key agreements, including MoUs on fisheries, aquaculture, digital transformation, meteorology, UPI integration, and pharmaceutical standards. They also agreed on the Terms of Reference for an India-Maldives Free Trade Agreement (FTA). India extended a Line of Credit worth ₹4,850 crores and eased Maldives’ debt repayment terms. PM Modi will attend the Maldives’ 60th Independence Day celebrations as Guest of Honour.
Why it matters to India
The visit boosts India-Maldives ties under the ‘Neighbourhood First’ policy and reaffirms India’s role as a key development and strategic partner in the Indian Ocean. Agreements in digital payments, infrastructure, and climate collaboration reflect India’s focus on soft power, connectivity, and shared prosperity.