GS2 · IR

PM in Maldives: ₹4,850 crore LoC and FTA talks

Battle IAS current affairs title card: PM in Maldives: ₹4,850 crore LoC and FTA talks (GS2 · IR, 25 July 2025)

What happened

  • During the PM’s State Visit to the Maldives (25-26 July 2025), India extended a Line of Credit of ₹4,850 crore, reduced the Maldives’ annual debt repayment on Indian LoCs and launched talks on an India-Maldives FTA [MEA].
  • India handed over 3,300 social housing units in Hulhumale and inaugurated the Maldives Ministry of Defence building in Male [MEA].

Background

  • A stamp marked 60 years of diplomatic relations; ties are guided by the October 2024 Joint Vision on a Comprehensive Economic and Maritime Security Partnership [MEA].

Why it matters

  • Debt relief and new credit together are the clearest sign of India backing the Maldives economically.

How to use this in Mains

GS-II Bilateral relations and effect of policies of other countries on India

  1. As per MEA (2025-07-25): during the PM's State Visit to the Maldives (25-26 July 2025), India extended a Line of Credit of ₹4,850 crore, reduced the Maldives' annual debt repayment on Indian LoCs and launched talks on an India-Maldives FTA.
  2. Debt relief and new credit together are the clearest sign of India backing the Maldives economically.
Quotable data point

India handed over 3,300 social housing units in Hulhumale and inaugurated the Maldives Ministry of Defence building in Male.

MEA: List of Outcomes, PM's State Visit to Maldives, 25 Jul 2025

Exam angle

UPSC

Prelims: Hulhumale, Addu; 60 years of ties. · Mains: Neighbourhood First and the Maldives.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

The Line of Credit announced for the Maldives in July 2025 was

Answer (b) & explanation

MEA release.

Official source: MEA: List of Outcomes, PM's State Visit to Maldives, 25 Jul 2025

facts from cited sources only; faculty review pending