India Has Always Been Maldives’ Friend In Need, Be It For Infrastructure Or Health: Take A Look

Last Updated:July 25, 2025, 14:43 IST

On visit to Maldives, PM Modi wrote on X: "I am confident that India-Maldives friendship will scale new heights of progress in the times to come."

PM Narendra Modi (left) being welcomed by Maldivian President Mohamed Muizzu. (X)

Prime Minister Narendra Modi on Friday expressed confidence that the friendship between India and the Maldives will “scale new heights of progress", as he arrived in Male for a two-day state visit at the invitation of Maldivian President Mohamed Muizzu.

In a post on social media platform X, PM Modi wrote, “Landed in Male. Deeply touched by the gesture of President Muizzu to come to the airport to welcome me. I am confident that India-Maldives friendship will scale new heights of progress in the times to come."

He is visiting the island nation at the invitation of Maldivian President Mohamed Muizzu and will attend the 60th Independence Day celebrations of the Maldives as the Guest of Honour.

The Ministry of External Affairs shared on X, “PM @narendramodi lands in Male, Maldives to a ceremonial welcome. In a special gesture, President @MMuizzu and his Cabinet members received PM at the airport. This is the 3rd visit by PM to. PM will be participating as ‘Guest of Honour’ at the 60th anniversary of the Independence of."

This is Prime Minister Modi’s third visit to the Maldives and marks the second leg of his two-nation tour after the UK.

Over the years, India has always been a friend in need to the Maldives. Here’s how:

Economic & Financial Assistance

Treasury bills and liquidity support: India renewed a USD 50 million treasury bill for another year via State Bank of India in May 2025, helping Maldives avoid default amidst heavy debt exposure. In 2024, India extended a USD 400-million currency swap line (via SAARC framework). It also granted an additional Rs 30 billion support to stabilise the Maldivian rufiyaa.

Budget support grants: For FY 2025–26, India allocated Rs  600 crore — up from Rs 470 crore—contributing approximately 72% of projected grant aid to Maldives.

COVID-era aid: India gifted a USD 250 m cash package in treasury bonds to assist during the pandemic in September 2020.

Infrastructure & Connectivity

News18 had earlier reported how as part of the India-Maldives development partnership, India has extended eight ‘Line of Credit’ Projects worth USD 1.3 billion to the Maldives. EXIM Bank of India signed a Line of Credit Agreement for USD 400 million, for funding the Greater Male Connectivity Project (GMCP), while India committed a USD 100 million grant for the project.

The projects India has helped with include:

Greater Malé Connectivity Project: The flagship project includes a 6.74 km bridge-causeway network linking Malé with Villingili, Gulhifalhu, and Thilafushi—funded via USD 100 m grant + USD 400 m LoC to enhance mobility for nearly half the population.

Hankede Bridge (Addu City): A 1.4 km bridge connecting Maradhoo to Gaukendi, built under the LoC, inaugurated in February 2025 to boost regional connectivity in southern Maldives.

Hanimaadhoo Airport: Expanded under an India-funded USD 136–132 m LoC; inaugurated recently, improving northern tourism and logistics connectivity.

Gan Airport (Addu): Largest-ever Indian-funded airport project, inaugurated in 2023-24 to enhance southern Maldives connectivity and tourism.

Addu City roads & reclamation: A USD 200 m project boosting infrastructure and tourism potential in Maldives’ second city.

Gulhifalhu Port project: India-backed harbour on Gulhifalhu to decongest Malé Port and support logistics—being rolled out under infrastructure credit lines.

Water & sanitation: Major climate-resilient infrastructure in 34 islands, benefiting ~28,000 residents, funded via USD 100 m grant for water supply and sewerage systems.

Social housing: Development of 4,000 affordable housing units in Hulhumalé Phase II under buyers’ credit, easing pressure on capital housing.

Fisheries & industrial support: Expansion of Maldives Industrial Fisheries Company (MIFCO) facilities at Felivaru and Gemanafushi islands, aiding the export-based economy; ice plants and logistics capacity set up under Indian support, with one plant inaugurated in February 2025.

Defence & Security Cooperation

Defence infrastructure: India funded and supports the construction of Uthuru Thila Falhu Naval Base & harbour, as well as coastal radar infrastructure in the Maldives.

Capacity building & training: India provides 70% of MNDF training, with over 1,500 Maldivian service personnel trained in India; joint exercises such as Ekuverin, Ekatha, and trilateral Dosti improve interoperability.

Operation Cactus & rapid response history demonstrates India’s role as the Maldives’ “first responder" in crises since the late 1980s.

Digital, Health & People-centric Cooperation

Health infrastructure: India built the Indira Gandhi Memorial Hospital in Malé (1995), a 300-bed tertiary facility, and supports TB medication and plans for a cancer specialty hospital in Laamu Atoll.

Community projects: India has supported 45 high impact community development projects covering amenities like playgrounds, gyms, coastal protection, police infrastructure, schools, and more—27 already completed with grants totaling dozens of millions USD.

Digital and financial systems: Launch of RuPay cards and plans to introduce UPI and unique digital identity systems in Maldives; MoUs agreed to support cross-border local currency trade and digital public infrastructure under SAGAR policy.

With Agency Inputs

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