Prime Minister Narendra Modi said India will also support the Maldives in “strengthening their defensive capabilities.”
Indian Prime Minister Narendra Modi announced a $565 million credit line and launched free trade talks with the Maldives during his visit to the Indian Ocean Archipelago.
Modi’s two-day trip, which began on Friday, aims to boost India’s development partnership with the Maldives, where India competes with China for influence.
The Indian Prime Minister said the credit line was at the heart of its goal.
“This will be used for projects linked to infrastructure development that aligns with the priorities of the people of the Maldives,” he said, adding that the two countries will also finalize bilateral investment agreements.
Modi, who has been officially visiting the Maldives for the first time since winning a third term last year, stressed that India remains the “first responder” of the country with a population of around 525,000 people.
“India will continue to support the Maldives in strengthening its defensive capabilities,” he said.
“Peace, stability and prosperity in the Indian Ocean region are our shared goals.”
India was concerned that the Maldives were drifting towards the orbit of rival China following the 2023 election of President Mohamed Muiz on the anti-Indian platform.
Since taking power, Muz has broken tradition by choosing to travel to China before visiting India.
He also secured the withdrawal of a small unit of Indian military personnel who operate two search and rescue helicopters and fixed-wing reconnaissance aircraft based in the archipelago.
Muizzu’s move temporarily exacerbated relations with New Delhi before India prevented the $7.5 billion economy from defaulting default as the Maldives struggled to bring tourists to white sandy beaches and luxury resorts.
Muizzu has since visited India and tightened his anti-Indian rhetoric. He also met Modi twice in New Delhi last year, pledging that both leaders would start a “new chapter” in bilateral relationships.
On Friday, Muiz said the credit line from India will be used to strengthen Maldives security forces and to improve healthcare, housing and education.
“India’s continued support for the Maldives through the export of essential goods is a key aspect of our bilateral cooperation,” he said.
Modi is scheduled to leave the archipelago on Saturday after attending the 60th Independence Day celebration in the capital.
The Indian Prime Minister will also remotely launch an international airport expansion on Hanimaadou, where India is supporting funds.
