With the local currency settlement system, trade can now take place directly in Rupees and Rufiyaa.
FinTech BizNews Service
Mumbai, July 25, 2025: There are 2 major developments on the digital fronts that have taken place between India and Maldives during the visit of Prime Minister Shri Narendra Modi.
Network-to-Network Agreement has been entered into between India’s NPCI International Payment Limited (NIPL) and Maldives Monetary Authority (MMA) on UPI in Maldives.
Also, MoU has been signed on cooperation in the field of sharing successful digital solutions implemented at population scale for Digital Transformation between Ministry of Electronics and IT of India and Ministry of Homeland Security and Technology of Maldives.
PM Narendra Modi and the President of Maldives, Dr. Mohamed Muizzu at the jointly inauguration of the Ministry of Defence building at Malé, in Maldives
This year also marks 60 years of diplomatic relations between India and the Maldives.
Prime Minister Shri Narendra Modi and the President of Maldives, H. E. Dr. Mohamed Muizzu, jointly inaugurated the state-of-the-art Ministry of Defence (MoD) building of Maldives in Male.
Overlooking the Indian Ocean, the eleven-storey building is a symbol of the strong and long-standing defence and security cooperation between the two countries.
The MoD building has been constructed with India's financial assistance and will contribute towards enhancing the capabilities of the defence and law enforcement authorities of Maldives.
Press Statement issued by the Prime Minister Shri Narendra Modi during Joint Press Statement with the President of Maldives, reads as follows:
the roots of our relationship are older than history itself and is as deep as the ocean. The commemorative stamp released today, featuring the traditional boats of both our countries is a reflection of the fact that we are not just neighbours, but also fellow voyagers on a shared journey.
Friends,
India is the closest neighbour of the Maldives. The Maldives holds a key place in both India’s "Neighbourhood First" policy and our MAHASAGAR vision. India also takes pride in being the Maldives’s most trusted friend. Be it natural disasters or pandemics, India has always stood by the Maldives as the ‘First Responder’. Whether it was ensuring the supply of essential commodities or supporting economic recovery post-COVID, India has always worked hand-in-hand with the Maldives.
For us, it is always friendship first.
Friends,
During President’s visit to India last October, we shared a vision for a comprehensive economic and maritime security partnership. That vision is now becoming a reality. As a result, our bilateral ties are reaching new heights, and several important projects have been inaugurated.
The four thousand social housing units built with India’s support will now mark a new beginning for many families in the Maldives — a place they can truly call home. Projects like the Greater Male Connectivity Project, the Addu Road Development Project, and the redevelopment of Hanimaadhoo International Airport will transform this entire region into a vital hub for transit and economic activity.
Very soon, with the launch of the ferry system, connectivity between the various islands will become even easier. After that, distances between islands will not be measured by GPS, but simply by ferry time!
To give a new momentum to our development partnership, we have decided to extend a Line of Credit of 565 million dollars — approximately five thousand crore rupees — to the Maldives. This will be used for infrastructure development projects aligned with the priorities of the Maldivian people.
Friends,
We have taken several steps to accelerate our economic partnership. To boost mutual investment, we will soon work towards finalizing a Bilateral Investment Treaty. Discussions on a Free Trade Agreement have also begun. Our goal now is — From paperwork to prosperity!
With the local currency settlement system, trade can now take place directly in Rupees and Rufiyaa. The rapid adoption of UPI in the Maldives will further strengthen both tourism and the retail sectors.
Friends,
Cooperation in the field of defence and security is a reflection of mutual trust. The Ministry of Defence building, being inaugurated today, is a concrete symbol of that trust — an embodiment of our strong partnership.
Our collaboration will now also extend to weather science. No matter what the weather, our friendship will always remain bright and clear!
India will continue to support the development of Maldives' defence capabilities. Peace, stability, and prosperity in the Indian Ocean Region is our shared objective. Together, through the Colombo Security Conclave, we will strengthen regional maritime security.
Climate change is a major challenge for both our nations. We have agreed to promote renewable energy, and in this area, India will share its experience with the Maldives.
Excellency,
Once again, on this historic occasion, I extend my heartfelt congratulations to you and the people of Maldives. I also thank you all for the warm welcome.
I reaffirm that India will stand with Maldives at every step on its path to development and prosperity.
List of Outcomes: State Visit of Prime Minister to Maldives
SI No. | Agreement/MoU |
1. | Extension of Line of Credit (LoC) of INR 4,850 crores to Maldives |
2. | Reduction of annual debt repayment obligations of Maldives on GoI-funded LoCs |
3. | Launch of India-Maldives Free Trade Agreement (IMFTA) negotiations |
4. | Joint issuance of commemorative stamp on 60th anniversary of establishment of India-Maldives diplomatic relations |
SI No. | Inauguration / Handing-over |
1. | Handing-over of 3,300 social housing units in Hulhumale under India's Buyers' Credit facilities |
2. | Inauguration of Roads and Drainage system project in Addu city |
3. | Inauguration of 6 High Impact Community Development Projects in Maldives |
4. | Handing-over of 72 vehicles and other equipment |
5. | Handing-over of two BHISHM Health Cube sets |
6. | Inauguration of the Ministry of Defence Building in Male |
SI No. | Exchange of MoUs / Agreements | Representative from Maldivian side | Representative from Indian side |
1. | Agreement for an LoC of INR 4,850 crores to Maldives | Mr. Moosa Zameer, Minister of Finance and Planning | Dr. S. Jaishankar, External Affairs Minister |
2. | Amendatory Agreement on reducing annual debt repayment obligations of Maldives on GoI-funded LoCs | Mr. Moosa Zameer, Minister of Finance and Planning | Dr. S. Jaishankar, External Affairs Minister |
3. | Terms of Reference of the India-Maldives Free Trade Agreement (FTA) | Mr. Mohamed Saeed, Minister of Economic Development and Trade | Dr. S. Jaishankar, External Affairs Minister |
4. | MoU on cooperation in the field of Fisheries & Aquaculture | Mr. Ahmed Shiyam, Minister of Fisheries and Ocean Resources | Dr. S. Jaishankar, External Affairs Minister |
5. | MoU between the Indian Institute of Tropical Meteorology (IITM), Ministry of Earth Sciences and the Maldives Meteorological Services (MMS), Ministry of Tourism and Environment | Mr. Thoriq Ibrahim, Minister of Tourism and Environment | Dr. S. Jaishankar, External Affairs Minister |
6. | MoU on recognition of Indian Pharmacopoeia (IP) by Maldives | Mr. Abdulla Nazim Ibrahim, Minister of Health | Dr. S. Jaishankar, External Affairs Minister |
7 MoU on cooperation in the field of sharing successful digital solutions implemented at population scale for Digital Transformation between Ministry of Electronics and IT of India and Ministry of Homeland Security and Technology of Maldives | Mr. Ali Ihusaan, Minister of Homeland Security and Technology | Dr. S. Jaishankar, External Affairs Minister |
8 Network-to-Network Agreement between India’s NPCI International Payment Limited (NIPL) and Maldives Monetary Authority (MMA) on UPI in Maldives | Dr. Abdulla Khaleel, Minister of Foreign Affairs | Dr. S. Jaishankar, External Affairs Minister |
Prime Minister Shri Narendra Modi and H. E. Dr. Mohamed Muizzu, President of the Republic of Maldives, released commemorative stamps on the occasion of the 60th anniversary of the establishment of India-Maldives diplomatic relations.
Reflecting the age-old bilateral ties between the two countries, the commemorative stamps depict the Indian boat Uru, a large wooden dhow handcrafted in the historic boatyards of Beypore, Kerala, and the traditional Maldivian fishing boat - Vadhu Dhoni. These boats have been part of the Indian Ocean trade for centuries. The traditional Maldivian fishing boat - Vadhu Dhoni - is used for reef and coastal fishing. It depicts Maldives's rich maritime heritage and the close bond between island life and the ocean.
India was one of the first countries to establish diplomatic relations with Maldives following its independence in 1965. The commemorative stamps release symbolizes the close and historical ties between the two countries.
