In a major diplomatic breakthrough, the Maldives and India signed eight pivotal agreements on Thursday, reaffirming their enduring partnership and unlocking new opportunities for economic and technological collaboration. The agreements were formalized during official bilateral talks held at the President’s Office in Malé, following the state visit of Indian Prime Minister Narendra Modi.
The high-level exchange took place in the presence of President Dr. Mohamed Muizzu and Prime Minister Modi, with India’s External Affairs Minister Dr. S. Jaishankar and respective Maldivian ministers signing the documents on behalf of both nations.
Among the most notable developments is the initiation of official consultations to establish a Maldives–India Free Trade Agreement (FTA), a move poised to significantly enhance trade flows and economic integration between the two countries.
Further cementing bilateral financial cooperation, India has extended a new Line of Credit worth USD 565 million through Exim Bank, coupled with a separate agreement to ease repayment terms on existing credit lines—providing vital fiscal flexibility to the Maldivian economy.
The agreements also mark a leap forward in digital innovation, with the Maldives Monetary Authority and India signing a pact to introduce India’s Unified Payments Interface (UPI), one of the world’s leading instant payment systems, to Maldivian consumers and businesses. This transformative step is expected to modernize the nation’s financial services landscape and promote seamless digital transactions.
Additional agreements focused on strategic sectors including:
- Cooperation in fisheries and aquaculture, strengthening the livelihoods of thousands of Maldivians;
- Environmental and climate action, aligning with the Maldives’ sustainability goals;
- Digital transformation support, aimed at boosting e-governance and IT capabilities;
- A pharmaceutical accord with Indian Pharmacopoeia (IP), ensuring access to high-quality, affordable medicines.
Prime Minister Modi’s visit coincides with the 60th anniversary of Maldivian independence and diplomatic ties between the two nations. Upon arrival at Velana International Airport, he was received with full honours by President Muizzu, highlighting the warmth and respect between the two governments.
As part of the celebratory agenda, Modi is set to inaugurate the new Ministry of Defence building—constructed with Indian grant assistance—and will attend the national sports festivities at Republic Square as guest of honour.
The agreements signed today serve as a testament to the Muizzu administration’s successful foreign diplomacy strategy and its unwavering commitment to advancing national development through strategic partnerships.
