Indian Prime Minister Narendra Modi concludes a 2-day visit to the Maldives on 25th and 26th July 2025, a visit that redefines and upends the `Comprehensive Economic and Maritime Security Partnership` finalised in 2024. With the Maldives deal, a country that had leaned towards China, India has reinforced its Neighbourhood First Policy with strategic neighbours in the Indian Ocean. Modi was the Chief Guest at the 60th Independence Day celebrations. He announced negotiations on a Free Trade Agreement with the Maldives. Another next big goal is settlement of bilateral in local currencies. The Indian Prime Minister said that soon people of Maldives and India will be able to do transactions in Rupee and Rufiyaa. Modi was received by President Mohamed Muizzu at the airport in the morning of 25th July 2025, they jointly inaugurated new defence ministry building in Malé built with Indian assistance.
Crowds present at defence ministry chanted `Narendra Modi Zindabad` as Modi and Muizzu pressed buttons to inaugurate the building. Maldives National Defence Force presented PM Modi with the traditional `Haiykolhu`, a Maldivian gesture of hospitality and honour. A giant photo of PM Modi was displayed on the front façade of the defence ministry building. Key agreements and MOUs signed were led by an extension of a fresh line of credit of Rs 4,850 crore to the Maldives. For the first time ever, the LOC is denominated in Indian Rupees. Importantly, an amendatory agreement reduces the annual debt repayment obligations of the Maldives by a sharp 40% from nearly US$51 million annually to about US$29 million. Other agreements and MOUs are on cooperation in the field of fisheries and aquaculture, an MOU between the Indian Institute of Tropical Meteorology of the Ministry of Earth Sciences and the Maldives Meteorological Services in the Ministry of Tourism and Environment; an MOU on cooperation in the field of sharing successful digital solutions that have been implemented at population scale for digital transformation between the Ministry of Electronics and IT of India and the Ministry of Homeland Security and Technology of the Maldives. There was also an MOU on the recognition of Indian pharmacopoeia in the Maldives, which will reinforce the availability and sourcing of high-quality medicines in the Maldives; and a network-to-network agreement between India`s NPCI, the National Payments Corporation of India International Limited, and the Maldives Monetary Authority to implement the Unified Payments Interface (UPI) that will greatly benefit tourism between the two countries. The Prime Minister also handed over 3,300 social housing units in Hulhumale that were built under the Indian Buyer`s Credit Scheme. The two leaders also together inaugurated the Roads and Drainage System Project in Addu City, six high-impact community development projects.
Indian Foreign Secretary Vikram Misri has said that Prime Minister Mod``s state visit also happens to be the first state visit of a head of government that President Muizzu is hosting in his presidency since he assumed the office in November 2023. India places Maldives in a strategic position in the MAHASAGAR vision - Mutual and Holistic Advancement for Security and Growth Across Regions. India has worked hard on the ties with the island nation and it hasn`t been easy to turn around President Muizzu who was seen as pro-China.
Indian Prime Minister Narendra Modi concludes a 2-day visit to the Maldives on 25th and 26th July 2025, a visit that redefines and upends the `Comprehensive Economic and Maritime Security Partnership` finalised in 2024. With the Maldives deal, a country that had leaned towards China, India has reinforced its Neighbourhood First Policy with strategic neighbours in the Indian Ocean. Modi was the Chief Guest at the 60th Independence Day celebrations. He announced negotiations on a Free Trade Agreement with the Maldives. Another next big goal is settlement of bilateral in local currencies. The Indian Prime Minister said that soon people of Maldives and India will be able to do transactions in Rupee and Rufiyaa. Modi was received by President Mohamed Muizzu at the airport in the morning of 25th July 2025, they jointly inaugurated new defence ministry building in Malé built with Indian assistance. 
