Modi's Strategic Moves: Strengthening Ties with the Maldives

Indian Prime Minister Narendra Modi announced a $565-million credit line and initiated free trade talks with the Maldives. His visit aims to enhance India's development partnership and influence in the region amidst competition with China. Infrastructure, tourism, healthcare, and housing are key focus areas.


Devdiscourse News Desk | Updated: 25-07-2025 19:25 IST | Created: 25-07-2025 19:25 IST
Modi's Strategic Moves: Strengthening Ties with the Maldives
Narendra Modi

In a significant diplomatic move, Indian Prime Minister Narendra Modi has unveiled a $565-million credit line to the Maldives and initiated free trade discussions during a pivotal visit to the Indian Ocean nation. This strategic engagement underscores India's commitment to strengthening its influence, particularly amid a competitive backdrop involving China's presence.

Modi's visit, the first foreign leader to engage with Maldivian President Mohamed Muizzu since his appointment in 2023, marks an effort to bolster India's development partnerships in the region. The substantial credit line is destined for crucial infrastructure projects aligning with Maldivian priorities, as reiterated by Modi, further enhancing bilateral cooperation in sectors such as tourism, healthcare, and housing.

This diplomatic interaction occurs as the Maldives navigates complex relationships, balancing ties with India and China. Previous Maldives policy shifts had strained relations with India, yet the island nation relied heavily on New Delhi's support to avoid a financial default. Modi's visit also coincides with the Maldives' 60th independence anniversary celebrations, where he will virtually inaugurate a pivotal airport expansion financed by India.

(With inputs from agencies.)

Give Feedback