In a significant diplomatic move, India has offered a fresh line of credit worth $565 million to the Maldives during Prime Minister Narendra Modi’s ongoing state visit. The financial package is aimed at enhancing bilateral cooperation across key sectors including defence, infrastructure, renewable energy, and development.
The agreement was reached following high-level discussions between PM Modi and Maldivian President Mohamed Muizzu. Apart from the credit line, both nations have agreed to initiate formal negotiations toward a Free Trade Agreement (FTA), marking a new chapter in regional trade integration.
Officials said the credit will be directed primarily toward sustainable infrastructure and housing projects in the island nation, alongside maritime security collaborations in the Indian Ocean region. The move comes at a time when India is actively seeking to balance China’s growing influence in South Asia through strategic investments and diplomatic engagements.
The announcement has been welcomed by strategic observers who see it as a reaffirmation of New Delhi’s “Neighbourhood First” policy. PM Modi is expected to attend several bilateral engagements before concluding the visit.
