Context:
During Prime Minister Narendra Modi’s official visit to the Maldives in July 2025, 8 pivotal bilateral agreements were signed, underscoring India’s commitment to its Neighbourhood First and SAGAR (Security and Growth for All in the Region) policies. The visit aimed to reset relations following past tensions and reaffirm India’s role as a trusted development and security partner.
Key Bilateral Agreements Signed
- Debt Relief
- India agreed to reduce the Maldives’ annual repayment burden by 40%, offering crucial fiscal breathing space.
- â‚ą4,850 Crore Line of Credit
- Earmarked for infrastructure development in sync with Maldivian priorities such as ports, housing, and connectivity.
- Digital Payment Integration
- Launch of UPI and RuPay systems to enhance local currency transactions, digital public infrastructure, and financial inclusion.
- Fisheries Cooperation
- Boost to marine livelihoods and sustainable fishing practices, vital to Maldives’ economy and India’s coastal diplomacy.
- Social Housing
- Handover of 3,300 Indian-financed housing units in Hulhumalé under India’s flagship urban development assistance.
- Defence Assistance
- India gifted 72 vehicles and other equipment to Maldives’ National Defence Force (MNDF), reinforcing trust and interoperability.
- Climate and Disaster Resilience
- Strengthened cooperation in climate action, early warning systems, and green energy solutions.
- Investment & Trade Frameworks
- Agreement to fast-track discussions on a Bilateral Investment Treaty (BIT) and Free Trade Agreement (FTA).
