Foreign Secretary Vikram Misri described the visit as “a demonstration of trust and strategic convergence.” On India’s concerns about foreign military presence in the region, Misri said: “Security is a mutual concern. Both sides reaffirmed that peace and stability in the Indian Ocean are shared responsibilities.”The two nations agreed to move swiftly on finalising a bilateral investment treaty and launched negotiations for a Free Trade Agreement (FTA). “We hope to conclude the India-Maldives FTA quickly,” Misri said. The line of credit is denominated in Indian rupees, the first such rupee-denominated LoC extended by India to the Maldives.Prime Minister Modi’s two-day visit also aims to reinvigorate India’s development partnership with the Maldives, with a ₹4,850 crore line of credit at its core. “This will support infrastructure projects aligned with the priorities of the Maldivian people,” Modi said.President Mohamed Muizzu, who once distanced his administration from New Delhi, struck a very positive tone. “Looking ahead, we are fully committed to further strengthening our cooperation with India across a broad range of sectors through high-level exchanges,” he said.Modi is the first foreign leader to visit Muizzu since he took office in 2023, after campaigning to end the Maldives’ “India First” policy and pivoting toward closer ties with China. That shift triggered a brief chill in bilateral ties.Relations began to thaw after India stepped in to help the Maldives avert a potential debt default, offering economic support as the tourism-dependent nation grappled with falling revenues in its $7.5 billion economy.Another outcome was the signing of a network-to-network agreement between NPCI International and the Maldives Monetary Authority to enable India’s Unified Payments Interface (UPI) in the island nation. “Once the technical integration is completed, people will be able to use UPI in the Maldives,” Misri said.India also agreed to ease the Maldives’ annual debt repayment obligations on existing Indian lines of credit, a move that signals New Delhi’s willingness to support Malé’s economic recovery. President Muizzu also condemned the recent terrorist attack in Pahalgam, expressing solidarity with India on counterterrorism efforts.
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