Key Highlights:
- India-Maldives trade jumps from $223 million in 2017-18 to $680 million in 2024-25
- India announces ₹4,850 crore line of credit to boost economic partnership
- Discussions begin on India-Maldives Free Trade Agreement (FTA)
- India to support Maldives in renewable energy development
- PM Modi’s recent visit marks shift in ties with Muizzu govt, once seen as pro-China
New Delhi: Bilateral trade between India and Maldives has more than tripled in the past seven years, rising from $223 million in 2017-18 to $680 million in 2024-25, according to official trade data.
- India’s exports to Maldives: Grew from $217 million (2017-18) to $561 million (2024-25)
- Maldives’ exports to India: Increased significantly from $6 million to $119 million in the same period
This sharp rise reflects growing cooperation in infrastructure, energy, tourism, and essential supplies sectors.
Modi’s Big Announcements During Maldives Visit
During his high-profile visit to Male last month, Prime Minister Narendra Modi announced a ₹4,850 crore line of credit to accelerate development projects in the Maldives, especially in connectivity, healthcare, and renewable energy.
Additionally, both sides confirmed that talks on a Free Trade Agreement (FTA) have been initiated — a deal that could further boost exports, tourism, and investment flows.
PM Modi’s visit coincided with Maldives’ 60th Independence Day celebrations, where he was the chief guest a symbolic gesture that underlined improving ties with the new government under President Mohammed Muizzu.
Renewable Energy Cooperation
India also pledged to share its expertise in renewable energy with the Maldives, focusing on solar, wind, and hybrid technologies to power the island nation sustainably.
This aligns with India’s vision of helping small island states fight climate change and achieve energy independence.
Muizzu’s Pro-China Image vs New Turn in Relations
The warming of ties is particularly significant because President Mohammed Muizzu was earlier seen as pro-China and had adopted an anti-India stance during his opposition years.
However, analysts note that recent developments point to a course correction in Male, with the Maldives recognizing the strategic and economic importance of India as a neighbor and partner.
India’s Larger Indian Ocean Strategy
The Maldives holds a central role in India’s Indian Ocean strategy, part of the Neighborhood First Policy and SAGAR (Security and Growth for All in the Region) doctrine. India sees:
- Maldives and other island nations not as secondary players, but as frontline states in climate action
- Custodians of sea lanes critical for global trade
- Partners in maritime security
Strengthened India-Maldives ties are therefore not just bilateral but have a wider impact on regional stability, climate action, and maritime cooperation.
