India-Maldives Reset: $565M Credit, Debt Relief

During Prime Minister Narendra Modi's visit to the Maldives, India announced a $565 million credit line to support infrastructure and development in key sectors such as defense, education, health, tourism, and digital development. Both nations also amended an existing credit agreement, reducing the Maldives’ debt burden by 40%. The visit marked the launch of formal free trade agreement talks, signaling a reset in bilateral relations after tensions following President Mohamed Muizzu's election and initial pivot toward China. Modi's presence at the 60th anniversary of the Maldives' independence reaffirmed India's commitment as the Maldives' 'most trusted friend'. Additional agreements were signed to deepen cooperation. India's continued support highlights its strategic interest in the region amid competition with China.