HISTORIC TRADE DEAL BRIDGES ECONOMIES

Indian Prime Minister Narendra Modi’s visit to the UK followed by Maldives has propelled India to a newer height on the global stage. The historic Free Trade Agreement between the UK and India and six MoUs signed with Maldives have further strengthened India’s economic, strategic and cultural influence.

Subhasini Naicker Wednesday 30th July 2025 07:53 EDT
 
 

Indian Prime Minister Narendra Modi undertook a four-day official visit to the United Kingdom and the Maldives, aimed at strengthening India’s ties with both nations.

In the first leg of his visit, from 23-24 July, he held talks with UK Prime Minister Sir Keir Starmer, signed a historic free trade agreement between the two countries at the Chequers and met King Charles III at the Sandringham Estate, in England. 

Modi also engaged with leading business figures from both countries, reaffirming efforts to deepen bilateral cooperation. The visit marked the evolution of a more mature, multi-dimensional relationship that goes beyond shared history, language, and the ‘living bridge’ of the Indian diaspora.

The UK’s National Security Strategy, published earlier this year, acknowledged this growing partnership, describing India as a “genuine strategic partner.” Using a cricketing metaphor, Modi said both countries were committed to building a “high-scoring, solid partnership.”

In the second leg, PM Modi visited the Maldives from 25–26 July at the invitation of President Mohamed Muizzu. He was the Guest of Honour at the celebrations marking the 60th anniversary of Maldivian Independence on 26 July, held talks with President Muizzu, and inaugurated key infrastructure projects.

During both visits, PM Modi received a warm and spirited welcome from the Indian diaspora, who turned out in large numbers waving the tricolour, singing patriotic songs, and expressing pride in India’s achievements, creating an atmosphere of excitement and unity.

Diaspora greets Modi with enthusiasm and pride

Indian Prime Minister Narendra Modi was received at the airport by Catherine West, the Foreign Office Minister responsible for the Indo-Pacific region. She was accompanied by Indian High Commissioner to the UK H.E. Vikram Doraiswami and British High Commissioner to India Lindy Cameron.

This marks Prime Minister Modi’s fourth visit to the UK since taking office, following trips in 2015, 2018, and the 2021 COP26 summit in Glasgow.

Upon his arrival, Modi was greeted by an enthusiastic Indian community, many of whom had travelled from across the UK to welcome him.

In a show of tradition and pride, around 15 buses arranged by the High Commission of India and Indian diaspora brought diaspora members to the venue. The vibrant welcome featured dhol, and cultural performances including Bharatanatyam, Garba, and more.

Expressing his gratitude, PM Modi shared a message on social media: “Touched by the warm welcome from the Indian community in the UK. Their affection and passion for India’s progress is truly heartening.”

Speaking to Asian Voice, Kuldeep Shekhawat, President of the Overseas Friends of BJP UK, said, “Prime Minister Modi’s visit marks a historic moment as India and the UK move closer to signing a Free Trade Agreement (FTA). This agreement will strengthen bilateral trade, making British products more affordable in India and vice versa.”

He added that despite tight security and a limited guest list due to the event being held outside London, around 1000 people attended. “Special buses were arranged by the High Commission and the Indian diaspora to bring people from London and across the UK. The atmosphere was electric, filled with cultural performances including dhol, dance, and drama, all by local artists.”

“The diaspora responded with great enthusiasm, chanting slogans like ‘Bharat Mata ki Jai,’ ‘Modi Modi,’ and ‘Jai Hind,’ creating a vibrant and patriotic environment,” he said.

One of the organising volunteers, Sushil Dokwal, who was part of the welcome committee for Prime Minister Modi’s UK visit, shared insights into the planning behind the event.

“The event was coordinated by the High Commission of India along with community organisations such as the Overseas Friends of BJP UK, Insight UK, and other diaspora groups,” he said. “A dedicated committee, led by Kuldeep Shekhawat, managed logistics, timings, and crowd control. I handled arrangements for the Wembley area.” 

Around 1,200 people registered within two days, with 900- 1,000 receiving clearance under strict security protocols set by the Prime Minister’s Special Protection Group (SPG). To manage transport, 15 buses were arranged from across London, including three from Wembley. “We had 160 people from our area alone,” said Sushil.

Attendees underwent identity checks and were warned that entry wasn’t guaranteed due to security restrictions. “Only the drivers knew the exact venue location,” he explained.  After thorough security screening, guests entered the enclosure for a vibrant cultural programme. “There were groups from Gujarat, Assam, Maharashtra; it was amazing to see such diversity.” As PM Modi walked past the crowd, the atmosphere was electric. “He was just two metres away, it was an unforgettable moment,” Sushil said. Despite multiple layers of security, Modi warmly acknowledged the crowd. “Phones weren’t allowed, but official photographers captured everything. People were dancing, celebrating, it felt like a true festival.” Return travel was smooth, with meals provided, wrapping up what Sushil described as “a day to remember for the UK’s Indian community.”

Bilateral cooperation in focus at Chequers 

Indian Prime Minister Narendra Modi met Prime Minister Keir Starmer at the historic Chequers Estate, the official country residence of the British Prime Minister located northwest of London. The meeting followed the signing of the long-awaited Comprehensive Economic and Trade Agreement (CETA), finalised in May after nearly three and a half years of negotiations. Calling India and the UK “natural partners,” Modi thanked Starmer for the warm welcome, saying their discussions reflected a shared commitment to strengthening ties across multiple sectors.

Both Prime Ministers interacted with players from Buckinghamshire Street Cricket Hubs. and Indian PM Modi also gave young girls a bat signed by the Indian cricket team which won the T20 World Cup. At Chequers, PM Modi and his counterpart Keir Starmer saw an exhibition which gave a glimpse of economic linkages between India and the UK. They shared a cup of tea together and while taking X, PM Modi tweeted, “‘Chai Pe Charcha’ with PM Keir Starmer at Chequers...brewing stronger India-UK ties!” 

Later, Modi engaged with top business leaders, emphasising that the landmark trade deal would unlock new opportunities for trade and investment between the two countries.

A landmark deal, but can it deliver?

India and the United Kingdom (UK) signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025, during Prime Minister Narendra Modi’s visit to England.

The landmark deal, concluded after three years of hard work and 14 rounds of negotiations, was signed by India’s Commerce and Industry Minister Piyush Goyal and Business and Trade Secretary Jonathan Reynolds.

Prime Ministers Modi and Keir Starmer, External Affairs Minister S Jaishankar, and UK Chancellor Rachel Reeves were present at the historic signing. Launched in 2022, when the UK sought new trade partners post-Brexit and India aimed to boost its ‘Atmanirbhar Bharat’ and ‘Make in India’ missions, the agreement addresses tariff reductions, visa rules, intellectual property rights, and protection of sensitive sectors.

Approved by the Indian Union Cabinet on July 22, the deal goes beyond trade to cover goods, services, investment, intellectual property, and professional mobility. While CETA is expected to boost India’s economic growth, create jobs, and strengthen its global trade position, the agreement, which promises significant tariff cuts and increased investment for both nations, still faces questions around its implementation and the actual scale of job creation.

A deal with far-reaching gains

For India, the gains from the UK–India Free Trade Agreement (FTA) are significant: 99% of its exports to the UK will now face zero tariffs, while its politically sensitive agricultural sector has been excluded from competition. India also secured the Double Contribution Convention Agreement, allowing temporary Indian workers in the UK to avoid national insurance contributions for three years, a reciprocal arrangement for British workers in India.

The UK benefits substantially as well, with India’s average tariffs on British goods dropping from 15% to 3%. Tariffs will be cut across 90% of British product lines, including automobiles (from 100% to 10%) and whiskey and gin (from 150% to 75%, eventually falling to 40%). British firms will also gain access to India’s vast procurement market, with tariff cuts estimated to be worth £400 million initially, rising to £900 million in a decade.

Highlighting the economic impact, Anuj J Chande OBE, Corporate Finance Partner & Head of the South Asia Business Group at Grant Thornton UK Advisory & Tax LLP, said, “The most significant advantage for both countries is the reduction of tariffs, boosting bilateral trade. For India, nearly 99% of current exports to the UK will either see a reduction in duties or become duty-free. This will particularly benefit labour-intensive industries such as leather, textiles, gems and jewellery, engineering products, as well as sectors like sports goods and toys, making Indian products more competitive against countries like China, which does not have an FTA with the UK. For the UK, around 90% of exports to India will either be duty-free or subject to reduced duties, allowing UK businesses greater access to one of the world’s largest and fastest-growing consumer markets. This will make UK products more price-competitive in a price-sensitive market, benefiting sectors such as food and beverage, retail and consumer goods, technology, and energy. Beyond trade, these tariff reductions are expected to drive investment growth. According to Grant Thornton’s 2025 India Meets Britain tracker, there are already 1,197 Indian-owned companies operating in the UK, and the FTA could significantly expand this footprint in the medium to long term.”

He further added, “Another key milestone achieved alongside the FTA is the Double Contribution Convention, which allows temporary workers in both countries a three-year exemption from social security contributions. Overall, I believe the FTA is a well-balanced deal and a win-win for both parties.”

However, Pratik Dattani, Managing Director of EPG, noted that challenges remain: “The deal still needs to be ratified by Parliament and a few of the finer points need to be worked out. For example, over what period do the whisky and auto tariff barriers reduce? So no one in the UK or India is likely to see practical benefit from this for the next year. The trade deal is comprehensive in that it doesn’t just cover the trade in goods, but services, government procurement and wider as well. In doing so, it sets a framework for broader and deeper collaboration between the two countries.”

UK’s biggest post-Brexit trade deal

Nearly 1,000 Indian companies currently operate in the UK, employing over 100,000 people. The India–UK FTA is expected to create 2,200 British jobs and boost wages by £2.2 billion annually. UK Prime Minister Keir Starmer called it the “biggest and most economically significant trade deal since leaving the EU,” as it provides the UK much-needed access to the world’s fastest-growing major economy.

On the deal’s geopolitical significance, especially post-Brexit, Chande said, “The deal marks a seminal moment in the trading history of the two nations. It is the largest trade deal done by the UK post-Brexit and it is India’s first deal done with a western nation. Amid the tariff turbulence caused by the Trump administration this agreement is a beacon of light.”

Dattani further emphasised the deal’s importance, saying, “Car manufacturing in the UK is at its lowest level since 1953. The trade deal the UK negotiated with President Trump might be making the best of a bad situation, but objectively it still leaves the UK worse off than a few months ago across a whole range of industries. The previous close economic ties with Europe will take a long time to restore. The UK doesn’t have the political appetite to become closer to China, as it once did under Cameron. So in terms of large, fast-growing economies, India is one of the only options available to the UK. But the trade deal is important in a world which has passed ‘peak globalisation’ thanks to the narrow-mindedness of President Trump. The deal sends a powerful message to the world that when two partners come together to discuss mutual opportunities, how they can both win.”

Projections show UK exports to India will rise by 60% and imports from India by 25%, leading to a 39% increase in bilateral trade worth £25.5 billion by 2040. The UK is likely to benefit more due to India’s protectionist stance, with the FTA expected to raise UK GDP by 0.13% compared to 0.06% for India.

The agreement eliminates tariffs on 99% of India’s exports, boosting labour-intensive sectors like textiles, leather, marine products, gems and jewellery, auto components, and engineering goods. Agricultural and processed food exports, including cereals, spices, fruits, and ready-to-eat products, will now enjoy zero duties, while sensitive sectors like dairy, apples, and cooking oils remain protected.

The UK’s $5.4 billion marine export market will now be duty-free for Indian exporters. Indian professionals will benefit from better mobility and no “economic needs test” in 36 service sectors, while 1,800 Indian chefs, yoga instructors, and classical musicians will be allowed to work in the UK temporarily. 

Additionally, £6 billion of UK investment will flow into Indian manufacturing, pharmaceuticals, and startups, enhancing access to UK investors and innovation hubs. The new “UK–India Vision 2035” and Defence Industrial Roadmap will further deepen collaboration in defence, security, technology, education, and people-to-people ties.

Hurdles ahead for India-UK FTA

Despite the major achievements of the FTA, certain ambiguities remain. India is still seeking exemptions from the UK’s proposed carbon tax, set to take effect in 2027, and a separate bilateral investment treaty is yet to be finalised. The successful agreement of the trade deal could still face hurdles, including bureaucratic delays, regulatory misinterpretations, and ensuring tangible job creation in both countries. Experts have also warned of potential challenges in the deal’s implementation.

Anuj Chande OBE noted, “The biggest risk or challenge is twofold – delays in ratification by both parliaments and differing interpretations of the detailed rules.” 

Pratik Dattani added, “While governments are focusing on potential billions in trade and investment, those figures are projections for ten years down the line. The real value lies in creating more low- and semi-skilled jobs for both populations, and I would have liked to see more clarity on how and where those jobs will be created.”

“A historic day in India-UK relations”

Addressing people present at the Chequers, Indian Prime Minister Narendra Modi thanked UK PM Keir Starmer for the warm welcome and hailed the signing of the long-awaited Comprehensive Economic and Trade Agreement (CETA) as “a historic day in India-UK relations.” 

He said the deal would boost access for Indian goods like textiles, seafood, and agricultural products in the UK, while giving Indian consumers affordable access to high-quality UK goods. Modi also highlighted the Double Contribution Convention, which will energise the services sector and boost investor confidence.

The leaders launched Vision 2035, a roadmap to strengthen cooperation in technology, defence, education, climate action, and people-to-people ties. Modi announced that six UK universities, including the University of Southampton, will open campuses in India and that a new industrial roadmap will deepen defence and technology security ties. “From AI to cyber security and critical minerals, we are committed to shaping the future together,” Modi said.

PM Modi thanked the UK government for strongly condemning the recent Pahalgam terror attack, stressing that “there can be no double standards in the fight against terrorism.” He reaffirmed cooperation on security and extradition while calling for accountability against those misusing democratic freedoms.

The leaders also discussed global issues, including the Indo-Pacific, Ukraine, and West Asia, urging peace and respect for sovereignty. “This is an era of development, not expansionism,” Modi said. He extended condolences to the families of British victims of the Ahmedabad plane crash and praised the Indian diaspora in the UK as a “living bridge” that brings “creativity, commitment, and character.”

Concluding with a cricket metaphor, he added: “Like in cricket, we may have swings and misses, but we always play with a straight bat. The agreements signed today and Vision 2035 are milestones in our high-scoring partnership.”

PM Modi ended by inviting PM Starmer to visit India soon: “I look forward to welcoming you in India very, very soon.”

Parliamentary Under-Secretary of State for Migration and Citizenship Seema Malhotra and Indian National Security Advisor Ajit Doval were also in attendance.

India, UK tackle illegal migration, extremism together

During the detailed press briefing, Indian Foreign Secretary Vikram Misri outlined the key outcomes of Prime Minister Narendra Modi’s official visit to the UK. He highlighted the warm welcome PM Modi received from both Prime Minister Keir Starmer and the Indian diaspora. The two leaders spent over three hours together at Chequers, engaging in restricted and delegation-level talks, which also included a working lunch. A major highlight of the visit was the signing of the Comprehensive Economic and Trade Agreement (CETA) between India and the UK. Signed by Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds, and overseen by both PMs, the agreement is expected to boost trade, lower tariffs across key sectors, and promote investment; especially in labour-intensive industries.

Misri confirmed that PM Modi will meet King Charles III, and symbolically gift a tree plantation, reinforcing India's commitment to environmental sustainability. The Foreign Secretary acknowledged UK cooperation on addressing extremist threats targeting Indian diplomatic missions, reaffirming both countries’ shared commitment to security and stability. He also referenced India’s expectations for swift legal processes in the extradition of economic offenders like Lalit Modi, Nirav Modi, and Vijay Mallya, and welcomed the newly signed MoU between the CBI and the UK’s National Crime Agency to combat corruption, fraud, and organised crime.

Touching upon illegal migration, Misri reiterated India's clear stance against it and said cooperation would continue, especially for the repatriation of undocumented immigrants. In a notable cultural and symbolic gesture, he also mentioned that a sapling from Pahalgam, Jammu & Kashmir, a region known for its natural beauty and significance, would be planted as part of the tree plantation gifted to King Charles III, connecting India’s heritage with global environmental values.

Throughout the briefing, Misri emphasised that the visit not only marked a major step forward in India-UK bilateral ties, but also showcased a holistic approach, encompassing economic diplomacy, cultural engagement, environmental cooperation, and a strong people-to-people connect.

PM Modi meets King Charles at Sandringham Estate

Indian Prime Minister Narendra Modi met King Charles III at Sandringham Estate in Norfolk and presented a tree sapling as part of his “Ek Ped Maa Ke Naam” environmental initiative.

In a post on X, Modi said he had a “very good meeting” with the King, discussing India-UK relations, progress on the Comprehensive Economic and Trade Agreement (CETA), and Vision 2035. They also spoke about education, health, Yoga, Ayurveda, and environmental sustainability—areas close to the King’s heart.

Foreign Secretary Vikram Misri said the sapling would be planted on the estate during the autumn planting season.

“This afternoon, the King received the Prime Minister of the Republic of India, Narendra Modi, at Sandringham House,” Buckingham Palace said in a social media statement along with an image of Modi with King Charles.

“During their time together, His Majesty was given a tree to be planted this Autumn, inspired by the environmental initiative launched by the Prime Minister, ‘Ek Ped Maa Ke Naam', which encourages people to plant a tree in tribute to their mothers,” the statement said.

King Charles and PM Modi, who share a strong environmental vision, were also expected to discuss Yoga and Ayurveda.

The tree gifted to the King, a Davidia involucrata ‘Sonoma’ or handkerchief tree, is known for its early, abundant flowering. Unlike the species, which can take 10–20 years to bloom, ‘Sonoma’ flowers within 2–3 years, displaying large white bracts resembling fluttering handkerchiefs or doves.

Unforgettable welcome for India’s PM

With Indian Prime Minister Narendra Modi’s visit to the UK, many people from the Indian diaspora and local communities have shared amazing experiences and heartfelt stories of meeting him. For many people, the chance to hear Modi speak in person or catch a glimpse of him up close was inspiring, reinforcing their pride in India’s progress and strengthening the emotional bond between India and its global community.

PM Modi posted a picture featuring the Indian-origin entrepreneur Akhil Patel in a tweet about his meeting with PM Keir Starmer. He tweeted, “‘Chai pe Charcha’ with PM Keir Starmer at Chequers…brewing stronger India-UK ties!” which caught many eyeballs. 

Speaking to Asian Voice, Akhil Patel, founder of ‘Amala Chai’ said, “It was pretty surreal. The Friday before the event, I received an email that looked almost like spam asking if I was free to do a pop-up for 60 people the following week. I agreed, and on Monday, the organiser mentioned the venue was Chequers. She said it was to celebrate the trade deal, so I assumed some ministers might be present but didn’t expect Prime Minister Starmer or Prime Minister Modi to be there.

“When I arrived, we were set up outside a tent with six other brands. A media lady mentioned it would be great to get a picture of the Prime Minister having a cup of chai, but I still wasn’t sure if they’d visit my stall. For the next two hours, I served guests, including Indian business leaders and ministers from both sides. Then, suddenly, Modi and Starmer arrived, and before I knew it, they were walking straight towards me. I hadn’t expected to be the first they’d approach, and everything happened so fast. I didn’t have time to think about how I was going to serve them, but having served so many cups of chai at events, I went into autopilot. I greeted them and served our flagship cardamom masala chai. Mr Modi even commented on how in Indian chai we usually boil the milk first. After I served Mr Starmer, there was a short silence, so I blurted out, ‘From one Chai Wala to another,’ and it seems to have struck a chord because it’s gone viral!,” he added.

On brand visibility after the moment, Akhil said, “The response has been incredible. The video has gone viral, and it’s amazing to think how many people have seen it. We posted it, and then realised others had downloaded and shared it widely. I’ve received so many warm messages from people who love our story and are rooting for us. As a founder, you often wonder if people notice the values behind your business, so this has been really special. I’m excited to see what opportunities will come from it.”  (Website: https://amalachai.com/)

(Instagram: https://www.instagram.com/amala_chai/)

Photographer Vineet Johri, who was capturing the moments as PM Modi received a warm welcome from the Indian diaspora, shared his experience, “This was truly overwhelming," Johri said. "It felt like the culmination of months of anticipation, starting with visits from leaders like S. Jaishankar in March, Piyush Goyal Ji, and Nirmala Sitharaman Ji. We had been covering all these events leading up to this moment, but when the helicopters landed on July 23 and I saw familiar faces step out, followed by the Prime Minister himself, it was an incredibly emotional moment for me as an Indian living in the UK for over three decades."

Johri vividly remembered the energy and excitement among the diaspora. "Even from the other side of the building where the helicopters landed, we could hear chants of 'Modi, Modi!' The crowd was emotional, excited and yet so respectful. Around a thousand people had gathered, some in three or four layers behind the barricades. When Modi ji began walking along the barricades, greeting the community, it was about 10 minutes of continuous interaction. He shook hands with as many people as possible, young children, elderly members, and entire families. Unlike concerts where fans hold on, here people would respectfully hold his hand and then let go. It was incredibly orderly."

He described one moment in particular that stood out: "A young girl stepped forward and tried to touch Modi ji’s feet. In a remarkable display of humility, he immediately bent down as if to touch her feet instead. It was deeply moving, and I was lucky to capture it on camera."

Johri added, "The cultural performances, the chants, and the way the diaspora came together created an electric atmosphere. For me as a photographer, those 10 minutes were intense, I was literally on rapid fire, taking around 2,000 photos while walking backwards to keep Modi ji in frame. It was challenging, but also the most rewarding assignment of my life. These images are something I will treasure forever."

Founder and Chairman of the Arora Group, Surinder Arora, who hosted Prime Minister Modi and his delegation at Luton Hoo said, “We were honoured as a company to host the Prime Minister and his entire team at Luton Hoo last week. It was a great privilege. Of course, we had to ensure everything remained confidential due to security reasons. My team, along with the High Commissioner’s team from London and officials from the Foreign Office, worked tirelessly together to make sure the visit went smoothly. I’m pleased to say everyone thoroughly enjoyed their stay. It was truly an honour for us. Luton Hoo, which we acquired about three years ago, is a property rich in history. Our late Queen spent ten days of her honeymoon there, and after the Second World War, Winston Churchill stood in front of the house and addressed a crowd of 110,000 people. It’s a very special and historic place. I know the Prime Minister was genuinely touched by the experience as a fellow Indian, it even more meaningful to host him and his delegation.”

“Now, looking at the bigger picture, I think it’s fantastic. The UK and India have always shared a close relationship and the signing of the Free Trade Agreement (FTA) is a major step forward. It will benefit Indian companies exporting goods to the UK and vice versa. For instance, British-made cars used to face over 100% customs duty in India. With the FTA, such barriers will be removed, and taxes significantly reduced. This is good news on both sides. India is currently the fastest-growing economy in the world, and I believe within the next one to two years, it will be among the top three globally. That’s truly remarkable. So yes, it was a great experience and an immense honour to have everyone with us,” he added. 

Maldives calls India partnership ‘unbreakable’

Prime Minister Narendra Modi’s two-day state visit to the Maldives marked a major step in strengthening bilateral relations. He was welcomed by President Mohamed Muizzu at Republic Square in Male, where he attended the country’s 60th Independence Day celebrations—the first Indian Prime Minister to do so and the first foreign head of government hosted by Muizzu. Modi was accompanied by a high-level delegation including External Affairs Minister S Jaishankar, National Security Advisor Ajit Doval, and Foreign Secretary Vikram Misri.

Modi and President Muizzu of Maldives reaffirmed the deep bonds of friendship and trust between India and Maldives, strengthened by centuries-old ties and strong people-to-people connections. They reviewed progress on 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.

Prime Minister reiterated India’s commitment to supporting Maldives under its Neighbourhood First and Vision MAHASAGAR policies, while President Muizzu appreciated India’s role as the “First Responder” in times of crisis. Both leaders discussed cooperation in development, infrastructure, capacity building, climate action, health, and maritime security, including collaboration through the Colombo Security Conclave.

They also reviewed the economic partnership, underscoring that the proposed Free Trade Agreement (FTA) and Bilateral Investment Treaty would unlock new opportunities. Emphasising digital economy linkages, the Prime Minister welcomed recent agreements on UPI adoption, RuPay card acceptance, and trade in local currencies.

As partners in the Global South, the leaders pledged continued collaboration on climate change, renewable energy, disaster risk reduction, and weather science. The Prime Minister thanked President Muizzu for strongly condemning the Pahalgam terror attack and expressing solidarity with India against terrorism.

Six MoUs were signed in areas including fisheries, aquaculture, meteorology, UPI, digital public infrastructure, and concessional Lines of Credit (LoC). India announced a new LoC of ₹4,850 crores (approx. USD 550 million) for infrastructure projects and eased Maldives’s annual debt repayments by 40%. The leaders also exchanged Terms of Reference for the proposed FTA.

They jointly inaugurated several development projects, including roads and drainage works in Addu City, six High-Impact Community Development Projects, 3,300 social housing units, and the handover of 72 vehicles to Maldivian authorities. India also gifted two Aarogya Maitri Health Cube (BHISHM) sets to strengthen Maldives’s emergency medical response.

The leaders planted mango saplings as part of India’s Ek Pedh Maa Ke Naam campaign and Maldives’s Pledge of 5 Million Tree Plantation initiative, reaffirming their shared commitment to environmental conservation. The Prime Minister reiterated India’s steadfast support for Maldives’s peace, progress, and prosperity and for stability in the Indian Ocean region.

At a state banquet attended by top Maldivian political and military leaders, President Muizzu described India-Maldives relations as “resilient and unbreakable,” rooted in centuries of cultural and historical ties. The visit marks a turnaround in relations after early tensions in Muizzu’s presidency and reaffirmed the Comprehensive Economic and Maritime Security Partnership agreed upon last year as a guiding framework for the future.

Prime Minister Modi also met Vice President Uz Hussain Mohamed Latheef, Abdul Raheem Abdulla, Speaker of the People’s Majlis, and former President Mohamed Nasheed, with whom he discussed strengthening India-Maldives ties. He interacted with beneficiaries of the Indian Technical and Economic Cooperation (ITEC) Programme, which focuses on capacity building, and also engaged with the Indian community in the Maldives.


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