India has extended a Rs.4,850 crore (approximately USD 565 million) Line of Credit to the Maldives during Prime Minister Modi’s visit to Malé. This development marks a significant revival in bilateral ties and supports infrastructure, defence, and economic cooperation between the two nations.

Key Points:

• India announced a Rs.4,850 crore Line of Credit to Maldives, marking the first-ever rupee-denominated LoC extended to the island nation.
• The package includes a 40% reduction in Maldives’ debt repayments on earlier Indian credits, providing much-needed financial relief.
• India and Maldives formally launched negotiations for a Free Trade Agreement (FTA), aiming to enhance economic ties.
• Six Memorandums of Understanding (MoUs) were signed across sectors like fisheries, UPI-based digital payments, meteorology, and pharmaceuticals.