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India–Maldives friendship grows from basics to bonds

Relations between India and the Maldives represent one of South Asia’s most stable and organically developed partnerships. Maldives Insight reports.

Long before diplomatic ties were formalised in 1965, the two nations were linked through maritime trade, cultural exchange and people-to-people contacts. Geographic proximity and historical familiarity laid the foundation for strategic trust and long-term cooperation, with India consistently viewed as the Maldives’ most reliable partner and the Maldives occupying a central place in India’s Indian Ocean vision.

This trust has been reinforced during moments of crisis. India acted as the Maldives’ first responder during the 1988 coup attempt, the 2004 Indian Ocean tsunami and the COVID-19 pandemic, providing military assistance, humanitarian aid, medicines, food supplies and vaccines. These actions transformed neighbourly relations into a bond rooted in reliability, empathy and strategic assurance.

Bilateral ties have recently gained fresh momentum following Prime Minister Narendra Modi’s visit to the Maldives, during which eight key agreements were signed. These include debt relief reducing annual repayments by 40 percent, a $565 million Line of Credit for infrastructure, UPI—RuPay integration, cooperation in fisheries, housing, security, climate resilience, and progress towards a Free Trade Agreement and investment treaty.

Economic interdependence has deepened steadily. Bilateral trade expanded more than threefold, from $223 million in FY 2017–18 to $680 million in FY 2024–25. India’s exports rose to $561 million, while imports from the Maldives reached $119 million. India supplies essential goods such as petroleum products, pharmaceuticals, construction materials, food items and machinery, underpinning energy, food and health security in the Maldives. In return, India imports fish and marine products, strengthening blue economy cooperation.

Tourism remains a vital bridge between the two countries. India is among the top source markets for Maldivian tourism, with over two lakh Indian visitors in recent years. Improved air connectivity, infrastructure development and digital payment systems like UPI have further boosted flows, supporting employment and economic resilience in the Maldives.

The partnership also extends to infrastructure and development. Indian investments and lines of credit support flagship projects such as the Greater Malé Connectivity Project, road development in Addu City and airport redevelopment.

Climate change cooperation forms another critical pillar, with joint efforts in renewable energy, coastal protection, water supply and disaster resilience. Looking ahead, deeper digital integration, expanded security cooperation and potential trade agreements are set to shape a future-ready partnership.

Overall, India—Maldives relations have evolved into a comprehensive, multi-dimensional partnership based on trust, development and shared regional stability in the Indian Ocean.

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