Modi-Muizzu talks in Male: ₹4,850 crore credit line, FTA talks launched, UPI pact
On 25 July 2025 in Male, Prime Minister Narendra Modi held talks with Maldives President Mohamed Muizzu; outcomes included a ₹4,850 crore Line of Credit and the launch of India-Maldives FTA negotiations.
Summary
Prime Minister Narendra Modi held talks with Maldives President Mohamed Muizzu at the President's Office in Male on 25 July 2025, after a ceremonial welcome at Republic Square, during his State Visit to Maldives. The leaders reviewed the India-Maldives Joint Vision for a 'Comprehensive Economic and Maritime Security Partnership', adopted during President Muizzu's State Visit to India in October 2024, and the Prime Minister reiterated India's 'Neighbourhood First' and Vision MAHASAGAR policies. Outcomes included an agreement for a Line of Credit of ₹4,850 crore, an amendatory agreement reducing Maldives' annual debt repayment obligations on Government of India-funded credit lines, and the launch of India-Maldives Free Trade Agreement (IMFTA) negotiations with its Terms of Reference. MoUs covered fisheries and aquaculture, cooperation between IITM and Maldives Meteorological Services, digital solutions, and recognition of the Indian Pharmacopoeia by Maldives, and NPCI International Payment Limited (NIPL) signed a network-to-network agreement with the Maldives Monetary Authority on UPI. External Affairs Minister S. Jaishankar signed the documents for India. India also handed over 3,300 social housing units in Hulhumale built under India's Buyers' Credit facilities.
Key facts
- Date / place
- 25 July 2025, President's Office, Male
- Line of Credit
- ₹4,850 crore
- Debt relief
- Amendatory agreement reducing annual repayment on GoI-funded LoCs
- Trade
- Launch of India-Maldives FTA (IMFTA) negotiations; ToR exchanged
- MoUs
- Fisheries & aquaculture; IITM-MMS meteorology; digital solutions; Indian Pharmacopoeia recognition
- Payments
- NIPL-Maldives Monetary Authority network-to-network agreement on UPI
- Housing
- 3,300 social housing units in Hulhumale handed over
- Framework
- Joint Vision: Comprehensive Economic and Maritime Security Partnership (Oct 2024)
Practice MCQs 5 questions
What was the value of the Line of Credit extended by India to Maldives during PM Modi's State Visit in July 2025?
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Correct answer: A — ₹4,850 crore
PIB List of Outcomes: extension of a Line of Credit of INR 4,850 crore to Maldives.
Which Indian entity signed a network-to-network agreement with the Maldives Monetary Authority on UPI in July 2025?
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Correct answer: B — NPCI International Payment Limited (NIPL)
PIB List of Outcomes: Network-to-Network Agreement between India's NPCI International Payment Limited (NIPL) and Maldives Monetary Authority (MMA) on UPI in Maldives.
The India-Maldives Joint Vision whose implementation PM Modi and President Muizzu reviewed on 25 July 2025 is titled:
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Correct answer: C — Comprehensive Economic and Maritime Security Partnership
PIB (25 July 2025): the leaders took stock of the India-Maldives Joint Vision for a 'Comprehensive Economic and Maritime Security Partnership', adopted during President Muizzu's State Visit to India in October 2024.
Consider the following outcomes of PM Modi's State Visit to Maldives (July 2025): 1. Launch of India-Maldives Free Trade Agreement negotiations. 2. An MoU on recognition of the Indian Pharmacopoeia by Maldives. 3. An amendatory agreement reducing Maldives' annual debt repayment obligations on GoI-funded Lines of Credit. Which of the above is/are correct?
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Correct answer: D — 1, 2 and 3
PIB List of Outcomes lists the launch of IMFTA negotiations, the MoU on recognition of Indian Pharmacopoeia, and the amendatory agreement on reducing annual debt repayment obligations. All correct.
How many social housing units in Hulhumale, built under India's Buyers' Credit facilities, were handed over during PM Modi's Maldives visit (July 2025)?
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Correct answer: B — 3,300
PIB List of Outcomes: handing-over of 3,300 social housing units in Hulhumale under India's Buyers' Credit facilities.