<h1>India Extends $565M Credit to Maldives, Plans Free Trade Deal, and Cuts Debt by 40% Under Section 56</h1> India has extended a line of credit worth approximately USD 565 million to the Maldives for infrastructure development and agreed to finalize a free trade agreement, marking a significant improvement in bilateral relations. The two countries held talks focusing on trade, defense, and maritime security, with India emphasizing its role as a trusted partner despite prior tensions following the Maldivian government's previous 'India Out' stance. A recent agreement will reduce the Maldives' debt repayment to India by 40 percent. Discussions also addressed regional security concerns, particularly regarding China's increasing influence. Joint inaugurations of India-assisted projects, including defense infrastructure and housing, were conducted. Plans to finalize a bilateral investment treaty and enhance economic cooperation through India's payment systems were announced, reinforcing India's commitment to supporting the Maldives' development and regional stability.