AdvertisementAdvertisementPresident of the Maldives Mohamed Muizzu, right, shakes hand with Indian Prime Minister Narendra Modi after signing a memorandum of understanding between the two countries in Male, Maldives, Jul 25, 2025. (Photo: Indian Prime Ministers Office via AP)27 Jul 2025 05:00AM Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInRead a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST MALÉ, Maldives: Indian Prime Minister Narendra Modi wrapped up a visit to the Maldives on Saturday (Jul 26), renewing ties by offering infrastructure projects and vital financial assistance to the cash-strapped Indian Ocean nation.Regional powerhouse India had been concerned that its small, yet strategically located neighbour was drifting towards the orbit of its rival China following the 2023 election of President Mohamed Muizzu on an anti-India platform.Since coming to office, Muizzu has secured the withdrawal of a small contingent of Indian military personnel who operated search-and-rescue aircraft in the archipelago.But he has since toned down his anti-India rhetoric, and on Friday he touted the two nations' collaboration on security and trade."India has long stood as the Maldives' closest and most trusted partner," Muizzu said in a banquet speech alongside Modi, whom he met with twice last year."We deeply value the friendship of India and are grateful for the timely assistance your country has extended to us in moments of need," Muizzu added.Shortly after his arrival on Friday, Modi unveiled a US$565 million credit line for the Maldives, which is facing a severe foreign exchange shortage despite its thriving tourism industry.India also reduced annual repayments of an earlier credit line from US$51 million to US$29 million, and the two sides discussed a potential free-trade agreement.India's Modi on two-day visit to Maldives as part of 'neighbourhood-first' policyCash-strapped Maldives leader in India to repair frail tiesHow the Maldives navigates a geopolitical tug-of-war between India and ChinaMuizzu said the new credit line would bolster the Maldives' security forces, and improve healthcare, housing and education.During his two-day trip, Modi also inaugurated a new defence ministry headquarters and several India-funded infrastructure projects, including roads and a 4,000-unit housing scheme. Modi's visit had set "a clear path for the future of Maldives-India relations", Muizzu wrote on X on Saturday as the Indian leader left the capital Male after 60th Independence Day celebrations."Our relationship continues to grow, shaped by people-to-people ties and cooperation in various sectors," Modi wrote in his own post on X."India remains committed to supporting the aspirations of the Maldivian people."Known for its luxury tourism and pristine beaches, the Maldives is also a geopolitical hotspot, with key global shipping lanes passing through its 1,192 islands, stretching across 800 kilometres of the equator.China and India are the Maldives' two largest bilateral lenders.Source: AFP/fsNewsletterMorning BriefSubscribe to CNA’s Morning BriefAn automated curation of our top stories to start your day.Sign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST