Indian Prime Minister Narendra Modi has announced a $565-million line of credit to the Maldives during his visit to the Indian Ocean archipelago.

India has decided to extend a $565 million line of credit to the Maldives, Prime Minister Narendra Modi said on Friday after bilateral meetings between the two countries.

Prime Minister Modi's state visit to the Maldives strengthened bilateral ties through key agreements and discussions. A major highlight was the extension of a Rs 4,850 crore line of credit and restructuring of existing debt,

Prime Minister Narendra Modi says India will also support the Maldives in ‘strengthening its defence capabilities’.

PM Modi promised that India would continue to support the Maldives and its people, based on what is needed and important for both nations, as well as for a peaceful and successful region around the Indian Ocean.

India is proud to be the most trusted friend of the Maldives, Prime Minister Narendra Modi said on Friday after announcing a Rs 4,850 crore line of credit to the island nation.

"India will continue to support Maldives in the development of its defence capabilities. Peace, stability and prosperity in the Indian Ocean region is our common goal," he said. In a sharp turn from his earlier stance, Maldives President Mohamed Muizzu called India his country's closest and most trusted ally.

A free trade agreement between India and the UK aims to enhance market access and increase trade by USD 34 billion each year. The deal will benefit a majority of Indian exports and ease British exports to India.