• Ahead of Prime Minister Narendra Modi’s scheduled visit to the Maldives on July 25–26, India is preparing to announce a new line of credit to support the island nation’s struggling economy.

• This visit coincides with Maldives National Day, during which PM Modi is expected to inaugurate multiple India-funded infrastructure and capacity-building projects.

• The new financial package is part of India's ongoing assistance to the Maldives under the 'Neighbourhood First' policy.

• India has already approved 56 High Impact Community Development Projects (HICDPs) in the Maldives—14 of which are completed and inaugurated.

• In May 2025, India extended support by rolling over a $50 million treasury bill, continuing its pattern of interest-free, emergency financial assistance to the Maldivian government through SBI.

• Since March 2019, India has facilitated and rolled over such treasury bills as part of a government-to-government framework, helping the Maldives manage its debt crisis and maintain economic stability.

• Strengthens bilateral ties and India’s strategic presence in the Indian Ocean Region (IOR).

• Reinforces India’s image as a reliable development and financial partner.

• Counters growing influence of external powers (like China) in the Maldives and surrounding maritime zones.