From Trade To Terror And Climate: What PM Modi, President Muizzu Discussed In Landmark Meeting

Last Updated:July 25, 2025, 21:28 IST

Both leaders reviewed the full spectrum of bilateral cooperation and reaffirmed their commitment to strengthening ties

News18

Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu on Friday held wide-ranging talks in Male, marking a reset in India–Maldives relations. Both leaders reviewed the full spectrum of bilateral cooperation and reaffirmed their commitment to strengthening ties.

During their meeting, the leaders focused on enhancing cooperation across key sectors including trade, defence, infrastructure, and climate action.

The Prime Minister’s Office said in a post on X that the discussions reaffirmed the Maldives’ central place in India’s ‘Neighbourhood First’ policy and its MAHASAGAR Vision.

“The leaders explored ways to deepen cooperation in key areas including housing, infrastructure, connectivity, defence, digital technology, climate action, renewable energy and cultural exchange," the PM’s office stated.

Trade And Investment Take Centre Stage

A key outcome of the meeting was the announcement of the launch of negotiations for a Free Trade Agreement (FTA) between India and the Maldives. Both sides also agreed to speed up work on a Bilateral Investment Treaty to encourage cross-border investments.

In a move to boost trade efficiency, PM Modi announced plans for a local currency settlement system that would allow direct trade using the Indian Rupee (INR) and the Maldivian Rufiyaa (MVR).

“With the local currency settlement system, we will be able to have direct trade between the Rupee and the Rufiyaa," PM Modi stated.

Defence Partnership

India reaffirmed its commitment to supporting the Maldives’ strategic and defence capabilities. As part of this, 72 vehicles and additional equipment were formally handed over to the Maldivian Defence Ministry.

President Muizzu acknowledged India’s continued financial support, including assistance with liquidity issues, and thanked India for its cooperation. “We appreciate India’s help in supporting the Maldivian economy and liquidity issues," he said.

Both leaders also reviewed ongoing collaboration on maritime security and affirmed the importance of stability in the Indian Ocean region.

Major Infrastructure Projects Unveiled

Infrastructure development was a key focus of the meeting. The two sides jointly inaugurated several Indian-funded projects, including 3,300 social housing units in Hulhumale, built under India’s Buyer’s Credit facilities.

Road and drainage infrastructure was also inaugurated in Addu City. In addition, six high-impact community development projects were unveiled across different regions of the Maldives.

Climate Cooperation

Acknowledging the shared risks posed by climate change, PM Modi and President Muizzu pledged closer cooperation on sustainability. As a symbolic gesture, both leaders planted saplings in Male under India’s ‘Ek Ped Maa Ke Naam’ campaign and the Maldives’ tree plantation initiative.

“India and the Maldives fully understand the challenges of climate change and environmental degradation. And, we are committed to doing everything possible to boost sustainability," PM Modi said.

Several MoUs/Agreements Signed

During the meeting, India and the Maldives also signed several key agreements and Memorandums of Understanding (MoUs):

Agreement for an LoC of INR 4,850 crores to MaldivesAmendatory Agreement on reducing annual debt repayment obligations of Maldives on GoI-funded LoCsTo launch the India-Maldives Free Trade Agreement (FTA)-Terms of Reference finalizedMoU on cooperation in the field of Fisheries & AquacultureMoU between the Indian Institute of Tropical Meteorology (IITM), Ministry of Earth Sciences and the Maldives Meteorological Services (MMS), Ministry of Tourism and Environmentview commentsLocation : First Published:

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