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India readies fresh line of credit for Maldives as PM Modi prepares to visit
India is preparing to extend a new line of credit to the Maldives, potentially finalising the agreement during Prime Minister Narendra Modi's upcoming visit on July 25–26, Economic Times cited people familiar with the matter as saying.
The visit coincides with Maldives National Day and is expected to see the inauguration of several India-funded projects.
The development comes at a time when the Maldives is grappling with economic headwinds. Modi's engagements during the two-day trip are expected to highlight India's role in supporting the archipelago's infrastructure and capacity-building efforts, which have taken on added urgency amid the country's ongoing fiscal challenges.
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India, Maldives, and the long credit line
India has a long history of offering financial and developmental assistance to the Maldives. It has extended multiple lines of credit in recent years, alongside funding a range of high-impact community development projects tailored to the priorities of the Maldivian government and its people.
To date, 56 such projects have been sanctioned, with 14 already completed and inaugurated. These schemes span education, healthcare, sanitation, and local governance and are emblematic of India's grassroots-level engagement in the country.
In May, New Delhi provided critical support by rolling over a $50 million treasury bill as emergency budgetary assistance to the Maldives. The measure was designed to shore up the country's financial position amid rising concerns over debt sustainability.
Since March 2019, India has helped facilitate a series of such treasury bill subscriptions by the State Bank of India. These have been extended annually, interest-free, through a special government-to-government mechanism, offering an economic lifeline to India's strategically located maritime neighbour.
The treasury bill support, rolled over most recently in May, represents one of several tools through which India continues to provide fiscal stability to the Maldives. As Modi's visit approaches, the latest line of credit is expected to reinforce that commitment and further consolidate India's influence in the Indian Ocean region.
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