New Delhi, July 25 -- Prime Minister Narendra Modi on Friday held talks with Maldivian President Mohamed Muizzu and declared that India will provide $565 million ( Rs.4,850 crore) line of credit to the island nation. He also said that talks of a free trade agreement between India and the Maldives have started.

"India will always support the Maldives to strengthen its defence capabilities," PM Modi also said during the meeting, marking a turnaround in India's bilateral ties with the island nation after a spell of unease.

During the Budget in February 2025, India's aid to the Maldives was increased by Rs.120 crore compared to last year's allocation. The government promised a grant of Rs.600 crore to the Maldives-an increase of 27 per cent...