New Delhi/Malé | July 25, 2025:
In a significant step to deepen regional ties, *Prime Minister Narendra Modi, during his official visit to the **Maldives, announced an expansion of India’s *Line of Credit to the island nation, raising it to ₹4,850 crore.
This enhanced financial assistance is part of India’s ongoing commitment to support development and strategic infrastructure in neighboring countries. Modi emphasized that this move will boost bilateral cooperation and strengthen economic and people-to-people ties.
Key Developments from PM Modi’s Maldives Visit:
- ₹4,850 Crore Line of Credit:
India increased its financial aid to assist in key development projects across the Maldives. - Talks on India-Maldives Free Trade Agreement (FTA):
Both nations have initiated formal discussions on a potential Free Trade Agreement, aimed at enhancing trade and investment flows. - Inauguration of Key Infrastructure Projects:
PM Modi launched road and drainage projects in Addu City, one of the southernmost urban regions in the Maldives. These projects aim to improve urban connectivity and sanitation. - Support with Vehicles:
As part of India’s defense and mobility cooperation, 72 vehicles were handed over to the Maldivian government to aid in public and administrative use.
“India and the Maldives share a close partnership built on mutual trust. Our goal is to support the development aspirations of the Maldivian people,” said Prime Minister Modi during the joint press address.
Why This Matters:
India’s strategic outreach in the Indian Ocean region is gaining pace amid growing global attention on maritime security and sustainable development. The Maldives, being a key maritime neighbor, plays a vital role in India’s “Neighbourhood First” policy.
This new credit line and growing trade discussions further cement India’s influence in the region, while also offering Maldives critical infrastructure and economic aid.