On July 25, 2025, Indian Prime Minister Narendra Modi participated in the 60th Independence Day celebrations of the Maldives, concluding a significant two-day visit to the island nation. The visit coincided with the anniversary of the establishment of diplomatic ties between India and the Maldives in 1965. During the trip, Modi announced a credit line of $565 million to support various development projects within the Maldives and formally launched discussions on a proposed free trade agreement.
Modi’s visit was viewed as essential to India's strategic ambitions in the Indian Ocean, particularly in countering the increasing influence of its regional rival, China. This trip marked a thaw in diplomatic tensions that had been evident since the election of pro-China President Mohamed Muizzu in 2023. Modi’s participation in the celebrations was a gesture aimed at reinforcing India’s ties with the Maldives and showcasing its influence in a region that has been increasingly leaning towards China.
During the celebrations held at Republic Square in the capital, Malé, Modi witnessed military parades and cultural performances honoring the Maldives' independence from British rule. The event was attended by a distinguished gathering, marking a renewed collaboration between the two nations. Modi and Muizzu finalized multiple agreements aimed at enhancing cooperation in sectors such as fisheries, health, tourism, and digital development. Additionally, Modi handed over several heavy vehicles donated by India to strengthen the Maldivian defense forces.
The backdrop of the visit was characterized by the Maldives being a focal point in the geopolitical rivalry between India and China. Following Muizzu’s election, which was marked by his pro-China stance, tensions escalated as he promised to expel Indian soldiers who had been stationed in the Maldives for humanitarian assistance. This development had led India to replace its soldiers with civilian experts in a bid to de-escalate tensions. Furthermore, Modi’s efforts to promote tourism in India’s Lakshadweep archipelago had incited discontent among Maldivians, who viewed the move as an attempt to attract tourists away from their own country.
Relations between India and the Maldives began to improve when President Muizzu attended Modi's swearing-in ceremony for a third term last year. Since then, Muizzu has moderated his anti-Indian rhetoric, leading to increased official contacts amid mounting concerns regarding the Maldives' economic condition. In an effort to assist a Maldives struggling with high debt, India pledged financial support during Muizzu's visit to India in October 2023. This included short-term government loans totaling $100 million and an agreement on a $400 million currency swap to stabilize the Maldives' economy.
Historically, India has been a key development partner for the Maldives. However, the island nation has also sought to strengthen its ties with China, participating in the Belt and Road Initiative since 2013 to enhance its infrastructure and trade capabilities, which signifies a broader effort by Beijing to increase its global foothold.
