Context of the Visit

• In 2025, Prime Minister Narendra Modi paid an official visit to the Maldives.

• A total of 8 significant bilateral agreements were signed during this visit.

• This visit aimed to reset and revitalise bilateral ties after a period of political unease under the “India Out” narrative.

• It reinforced India’s commitment to being Maldives’ trusted neighbour and development partner.

Why Maldives Matters to India

• Geographical proximity in the Indian Ocean makes it key to India’s maritime security.

• Part of India’s Neighbourhood First Policy and SAGAR (Security and Growth for All in the Region) initiative.

• Acts as a strategic outpost near vital shipping lanes that India seeks to protect.

• Shares strong cultural, ethnic, linguistic, and religious ties with India.

• Maldives is also part of India’s “First Responder” outreach in regional crises.

Key Agreements Signed in 2025

1. Debt Relief

1. • India agreed to cut Maldives’ annual repayment burden by 40%, easing its financial stress.

2. ₹4,850 crore Line of Credit

1. • India extended this amount to support infrastructure, connectivity, and development goals of Maldives.

3. UPI and RuPay Integration

1. • First time Indian fintech platforms will be operational in Maldives.

   • Promotes digital transactions, financial inclusion, and local currency trade.

4. Fisheries Cooperation

1. • Vital sector for Maldives’ economy and livelihoods.

   • India and Maldives will collaborate on sustainable fishing, marine research, and trade access.

5. Housing Development

1. • India handed over 3,300 affordable housing units in Hulhumalé as part of social welfare programs.

6. Security Assistance

1. • India gifted 72 vehicles, equipment, and defence gear to strengthen Maldives’ internal security capacity.

7. Climate and Disaster Resilience

1. • Focus on green energy, early warning systems, and joint preparedness for natural disasters.

8. Investment and Trade Cooperation

1. • Agreed to speed up discussions on Free Trade Agreement (FTA) and a Bilateral Investment Treaty (BIT).

Strategic Significance of the Visit

• Reversed the earlier “India Out” sentiment that had portrayed Indian presence as intrusive.

• Reaffirmed India’s role as a reliable development and security partner.

• Boosted India’s presence in the Indian Ocean Region (IOR) amid growing Chinese influence.

• Focused on people-first development, such as housing, education, and healthcare.

Historical Foundation of Ties

• India recognised Maldives’ independence first in 1965.

• In 1988, India helped defeat a coup attempt via Operation Cactus, earning long-term goodwill.

• Provided timely help during:

  • 2004 tsunami relief,

  • 2014 Malé water crisis,

  • COVID-19 pandemic (vaccines, food, medicines).

• These humanitarian efforts have cemented India’s image as Maldives’ first responder.

Major Areas of Cooperation

1. Defence and Security

• Joint exercises:

  • Ekuverin (Army),

  • Dosti (Coast Guard),

  • Ekatha (Defence capacity building).

• Key projects supported by India:

  • MNDF Training Academy,

  • UTF Harbour,

  • Coastal Surveillance Radar System.

• India has helped train over 1,500 officers of Maldives National Defence Force (MNDF).

• India supports maritime patrols, medevac (emergency airlifts), and disaster response operations.

2. Development and Infrastructure

• Flagship projects:

  • Greater Malé Connectivity Project,

  • Hanimaadhoo Airport,

  • IGMH Hospital upgrade,

  • MIFCO Cold Storage facilities.

• 47 High Impact Community Development Projects (HICDPs) completed across Maldives.

• Focus on decentralised and inclusive development.

3. Trade and Investment

• India was Maldives’ largest trading partner in 2023.

• Bilateral trade reached $548 million in 2023.

• Major Indian exports: Food, medicines, building materials.

• Imports from Maldives: Seafood, scrap metal.

• UPI and RuPay to boost real-time digital financial exchange.

4. Tourism and Culture

• India was top tourist source country from 2021 to 2023.

• Over 2 lakh Indian tourists visit annually.

• Open skies agreement to enhance air connectivity.

• Film shooting, yoga events, and cultural exchanges promoted mutual understanding.

5. Education and Human Resource Development

• Indian scholarships (ICCR, ITEC) provide Maldivian students access to higher education.

• Teacher training, technical education, and ICT development supported by India.

• India assisted in building Police Training Academy, technical institutes, and digital infrastructure in Malé.

Challenges in the Relationship

1. “India Out” Campaign

• A nationalist movement under President Muizzu earlier labelled India’s presence as a threat to sovereignty.

• Created temporary distrust among the public and political groups.

2. Growing Chinese Influence

• Maldives has increasing Chinese debt from Belt and Road Initiative (BRI) projects.

• Risk of Maldives drifting into China’s strategic orbit, similar to Sri Lanka’s Hambantota port issue.

3. Sovereignty Sensitivities

• Indian-funded defence facilities and military personnel are sometimes seen as interference by opposition parties.

4. Political Instability in Maldives

• Frequent government changes and coalition politics lead to foreign policy swings.

• Strains continuity in bilateral relations.

5. Project Execution Delays

• Delays due to administrative bottlenecks, local opposition, and political interference.

• Affects India’s credibility and image on the ground.

Way Forward

• Ensure timely execution of all Indian-funded projects.

• Establish institutional mechanisms for regular dialogue on security, trade, and technology.

• Deepen cooperation in blue economy, marine biodiversity, and clean energy.

• Expand youth, educational, civil society, and religious exchanges to strengthen public trust.

• Align Maldives with India’s Indo-Pacific strategy for regional peace, rule of law, and economic stability.

• Focus on transparent development finance to counter Chinese-style debt diplomacy.

 Conclusion
India and Maldives share a historic bond of mutual trust, cultural proximity, and strategic cooperation.
Prime Minister Modi’s 2025 visit marked a turning point in countering anti-India narratives and reaffirming India’s role as Maldives’ developmental and strategic partner.
The future of India-Maldives relations lies in people-first diplomacy, regional stability, and collaborative growth.