PM Modi Offers $565 Million to Maldives as Muizzu Reverses Stance and Resets Ties with India



Prime Minister Narendra Modi’s high-stakes visit to the Maldives has sparked a diplomatic and economic reset between the two countries after a year of icy relations. In a significant breakthrough, India extended a new line of credit worth $565 million to the Maldives, and also signed an agreement that reduces the island nation’s annual debt repayments by 40%. This represents a dramatic turnaround, as Maldivian President Mohamed Muizzu came to power in 2023 on an “India Out” platform. During Modi’s visit, seven key MoUs were signed, covering areas from fisheries and meteorology to UPI and digital public infrastructure. Muizzu praised India’s vital support during economic difficulties and commended the ongoing export of essential commodities. Several India-backed infrastructure projects, including a defence ministry building and 3,300 housing units, were inaugurated. Modi reaffirmed the enduring India-Maldives friendship, describing it as “as deep as the ocean.” This development could reshape regional geopolitics and enhance India’s maritime influence.

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