MALE, Indian Prime Minister Narendra Modi has announced a US$565 million credit line to support the Maldives’ defence and infrastructure development during his official visit to the island nation on Friday. The move underscores India’s commitment to its strategically located neighbour and aims to deepen bilateral ties amid regional geopolitical tensions.
On his first trip to the Maldives since securing a third term, Modi reaffirmed India’s role as the Maldives’ “first responder” and a steadfast partner in promoting peace and stability in the Indian Ocean.
“India will continue to assist the Maldives in enhancing its defence capabilities,” said Modi. “Peace, stability, and prosperity in the Indian Ocean are common goals we share.”
India’s renewed engagement comes amid concerns over the Maldives’ warming ties with China, especially after the 2023 election of President Mohamed Muizzu, who initially took an anti-India stance. Since assuming office, Muizzu oversaw the withdrawal of Indian military personnel who had been operating search-and-rescue helicopters and surveillance aircraft in the archipelago. However, he has recently adopted a more conciliatory tone, signalling a willingness to strengthen bilateral relations.
Modi’s visit saw the launch of several Indian-backed infrastructure projects, including road upgrades and a 4,000-unit housing scheme. President Muizzu welcomed the financial support, stating that the credit line would go toward enhancing the country’s defence capabilities, as well as healthcare, housing, and education.
“India’s continued supply of essential goods is a vital element of our cooperation,” Muizzu noted.
The visit coincides with the Maldives’ 50th Independence Day celebrations, which Modi attended before departing the country on Saturday.
The Maldives, known for its luxury resorts and pristine beaches, has become a focal point of strategic competition between India and China—its two largest bilateral lenders. The archipelago of 1,192 coral islands stretches across vital global shipping routes, making it a key player in the geopolitics of the Indian Ocean.
India continues to view the Maldives, along with Sri Lanka, as part of its traditional sphere of influence.
