ANKARA

India and the Maldives signed a $565 million line of credit agreement on Friday during Indian Prime Minister Narendra Modi’s two-day state visit to the island nation.

Maldivian President Mohamed Muizzu hosted Modi in the capital Male, where the two leaders held what India’s Foreign Ministry described as a “wide-ranging” meeting covering economic, strategic and regional cooperation.

The two countries also signed an agreement outlining the terms of reference for an India–Maldives Free Trade Agreement (FTA), the ministry said.

Trade between the two nations has expanded significantly — rising from $300 million in 2021 to $548 million in 2023, according to India’s state-run broadcaster Doordarshan.

During Friday’s talks, the leaders reviewed the full scope of bilateral ties and discussed collaboration in key areas, including the digital economy, climate change and renewable energy.

“The two leaders called for closer collaboration to enhance peace, progress and prosperity of the Indian Ocean region,” Indian Foreign Ministry spokesman Randhir Jaiswal said on X.

Modi, the first foreign leader hosted by Muizzu since he took office, said after the meeting: “Whatever the weather may be, our friendship will always remain bright and clear.”

He added that India would continue to support the development of Maldives’ defense capabilities.