On July 25, 2025, Prime Minister Narendra Modi announced a ₹4,850 crore (USD 565 million) Line of Credit to the Maldives during his two-day visit. This step is aimed at funding key projects like housing, transportation, and water systems to support the island nation’s growth. 

Alongside the credit support, India and Maldives have launched official talks on a Free Trade Agreement and an investment treaty, signaling deeper economic partnership . During the visit, several memorandums of understanding (MOUs) were signed in areas including fisheries, weather services, and digital payments integration (UPI) .  

PM Modi emphasized, “For us, it is always friendship first,” reminding that India remains the Maldives' trusted neighbour and partner. This credit line and cooperation talks follow India’s ongoing support during Maldivian economic stress, reinforcing both ties and shared values.

This agreement marks a strong moment in India‑Maldives ties. It shows how India offers help through trusted cooperation, while building shared prosperity. As projects take shape and trade talks move forward, both nations seem ready for a brighter, closer future.