Male: India and the Maldives have solidified their bilateral relationship with the signing of a $565 million line of credit agreement during Indian Prime Minister Narendra Modi's two-day state visit to the island nation.

According to Anadolu Agency, the agreement was signed as Maldivian President Mohamed Muizzu hosted Prime Minister Modi in Male. The two leaders engaged in discussions described by India's Foreign Ministry as 'wide-ranging', focusing on economic, strategic, and regional cooperation. A significant development during the visit was the signing of an agreement that outlines the terms of reference for an India-Maldives Free Trade Agreement (FTA).

Trade relations between India and the Maldives have seen a substantial increase, growing from $300 million in 2021 to $548 million in 2023, as reported by India's state-run broadcaster Doordarshan. The discussions on Friday encompassed the entire spectrum of bilateral relations, emphasizing collaboration in critical areas such as the digital economy, climate change, and renewable energy.

Indian Foreign Ministry spokesman Randhir Jaiswal stated on X that both leaders emphasized the importance of closer collaboration to enhance peace, progress, and prosperity in the Indian Ocean region. Prime Minister Modi, who is the first foreign leader to be hosted by President Muizzu since taking office, remarked on the steadfast nature of the India-Maldives friendship, saying, "Whatever the weather may be, our friendship will always remain bright and clear."