India approves USD 565m credit line to Maldives

President Dr. Mohamed Muizzu has announced that the government of India has approved a USD 565 million credit line to support priority development projects in the Maldives.

The announcement came following a meeting with Indian Prime Minister Narendra Modi at the President’s Office on Friday evening.

President Muizzu welcomed the funding as a significant step forward in the two nations’ longstanding partnership.

Highlighting that the credit assistance from the government of India will help the Maldives realize key projects that are vital to the country’s growth, Muizzu said that PM Modi’s visit coincides with two important occasions.

As such, on Friday, both leaders unveiled a commemorative stamp marking 60 years since the establishment of formal diplomatic ties between the two countries. On Saturday, the Indian Prime Minister is expected to take part in celebrations marking the 60th anniversary of the Maldives’ independence.

President Muizzu noted the significance of both events and highlighted the enduring friendship between the Maldives and India.

Muizzu went on to reveal that a series of important agreements were signed on Friday afternoon during extensive discussions with Indian Prime Minister Narendra Modi, who is on an official visit to the Maldives.

In total, four Memorandums of Understanding (MoUs) and three bilateral agreements were signed in the presence of both leaders, including a major USD 565 million credit line from India to fund high-priority development projects across key sectors.

Muizzu said that the credit assistance will be earmarked for priority projects that are central to the government’s development agenda.

The Maldivian leader also highlighted that the visit led to the finalization of several significant matters.

Among the major developments, President Muizzu highlighted the easing of annual debt repayment obligations for Indian-funded Line of Credit (LoC) projects, a move expected to offer significant fiscal relief. The two leaders also agreed to begin formal discussions on establishing an India-Maldives Free Trade Agreement (IMFTA), aimed at boosting bilateral trade and economic cooperation.

During the visit, the Indian government officially handed over 3,300 social housing units in Hulhumalé, constructed under its Buyer’s Credit Facility. Additionally, infrastructure development received a major boost with the inauguration of road and sewerage projects in Addu City, and the launch of six high-impact community development initiatives across the Maldives.

India also transferred 72 vehicles and a range of equipment to the Maldives National Defence Force (MNDF), reinforcing defense cooperation between the two nations.

Modi arrived in Malé on Friday morning, at the invitation of President Muizzu. His visit, spanning July 25 - 26, includes participation as the Guest of Honor in the Maldives’ Independence Day celebrations, marking the country’s 60th year of independence.