Malé, Maldives, July 25, 2025 (UNI) Prime Minister Narendra Modi has arrived in the Maldives on Friday on his 2 days state visit, his first to the island nation since President Mohamed Muizzu assumed office in November 2023.
PM Modi was warmly recieved by the Maldivian President Mohamed Muizzu who was also joined by his Foreign Minister, Defence Minister, Finance Minister, and Minister of Homeland Security.
PM Modi’s visit coincides with the Maldives’ 60th Independence Day and six decades of diplomatic ties with India. The Indian Prime Minister has been invited by the Maldivian President as the ‘Guest of Honour; on Maldives’ 60th Independence Day on 26th of July. The visit builds on Muizzu’s October 2024 trip to New Delhi, where India extended a $750 million currency swap agreement.
The PM is expected to hold a restricted bilateral meeting with the Maldivian President in the afternoon today. The meeting will be followed by delegation level talks. India and Maldives are expected to sign several MoUs on bilateral cooperation, besides the two leaders will also witness virtual Inauguration of several developmental Projects that have been undertaken with Indian government’s help. Earlier this week the Maldivian President’s Office had said the two leaders will also oversee the exchange of “a number of Memoranda of Understanding aimed at deepening cooperation across various sectors of mutual interest.”
The visit is being seen as a major reset in the India and Maldives ties, which during the tenure of president Muizzu, his anti-India domestic politics and an open China-leaning foreign policy had seen many ups and downs. When the question was posed to Foreign Secretary Vikram Misri about the turnaround in India Maldives bilateral ties he said, “It’s a question of working hard at a relationship. There will always be events that will that will impact or try to include on the relationship, but I think this is testimony to the kind of attention that has been paid to the relationship, and including attention at the highest levels that has been paid to the relationship, we continue to work at it, and I think the result is there for you to see.”
India is one of the largest trading partners of the Maldives with bilateral trade at nearly $500 million. Both countries are in discussions to negotiate free trading agreements and an investment treaty as well. The two sides are also looking at new areas of cooperation, including renewable energy, fisheries, Infrastructure development projects in Maldives. During the visit of President Muizzu to India in October 2024 the two leaders adopted a Joint Vision for an India-Maldives, Comprehensive Economic and Security Partnership. India had extended considerable market emergency financial assistance to the Maldivian Government to sail through a critical time of depleting foreign reserves through instruments such as the twin currency swap arrangements that was done during the visit of President Muizzu. India provided a $400 million currency swap agreement and an additional ₹30 billion (approximately $357 million) under another swap deal to bolster the Maldives’ depleting foreign exchange reserves, which stood at $440 million, barely sufficient for 1.5 months of imports. The State Bank of India rolled over $100 million in Treasury Bills for another year, following earlier rollovers in May and September 2024, providing emergency financial relief to prevent a potential debt default.
