India Extends ₹4,850 Crore Line of Credit to Maldives During Prime Minister’s Visit

 Malé: Prime Minister Narendra Modi on Friday announced a ₹4,850 crore Line of Credit (LoC) to the Maldives as part of a renewed commitment to deepen bilateral cooperation. The announcement came after delegation-level talks with Maldivian President Mohamed Muizzu during PM Modi’s two-day state visit to the island nation.

PM Modi arrived in Malé on Friday, marking his first official visit to the Maldives under the current administration. The discussions between the two leaders signaled a significant reset in India-Maldives relations following a period of diplomatic strain. 

Talks focused on enhancing collaboration in key sectors such as trade, defence, and infrastructure. In a noteworthy development, both countries also agreed to begin negotiations for a proposed India–Maldives Free Trade Agreement (IMFTA), aiming to unlock new economic opportunities.

Key Outcomes of the Visit:

Line of Credit Extended: India signed an agreement to provide a ₹4,850 crore Line of Credit to assist the Maldives in its development goals.

Debt Relief: India agreed to reduce the Maldives’ annual repayment obligations on existing Government of India-funded LoCs.

FTA Negotiations Launched: Discussions for the India–Maldives Free Trade Agreement officially began.

Housing and Infrastructure: PM Modi handed over 3,300 social housing units in Hulhumalé built under India’s Buyer’s Credit facility and inaugurated the Roads and Drainage System Project in Addu City.

Community Development Projects: Six High-Impact Community Development Projects were jointly launched.

Support Equipment Delivered: India handed over 72 vehicles and other essential equipment to support various sectors.

Cultural Milestone: A joint commemorative stamp was issued to mark the 60th anniversary of the establishment of diplomatic relations between India and the Maldives.

India and the Maldives also reaffirmed their shared vision for a stable, secure, and prosperous Indian Ocean region. The visit underscored New Delhi’s continued strategic interest in the Maldives, a key maritime neighbour and partner in regional security and connectivity.

With a renewed spirit of cooperation, the visit marked a turning point in bilateral ties, laying the foundation for expanded partnerships in trade, infrastructure, and people-to-people engagement.

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