Thilamale Bridge, Backed by India, Signals a New Era of Economic Ambition

01 Jul, 2025
3 mins read

MALÉ, Maldives — On a sun-drenched morning in the Maldives, Minister of Construction, Housing, and Infrastructure Dr. Abdulla Muththalib announced a milestone that has stirred optimism across this archipelago nation: the Thilamale’ Bridge, a 6.7-kilometer marvel linking the capital, Malé, with the industrial hub of Thilafushi via Vilimalé and Gulhifalhu, is now 60.84 percent complete. With 263 concrete piles driven into the ocean floor across 68 locations, the $500 million project stands as a testament to engineering resilience and a symbol of deepening ties between the Maldives and India.

For a nation fragmented by geography, the bridge promises to stitch together islands, economies, and aspirations. The Thilamale’ Bridge, the largest infrastructure endeavor in the Maldives since the China-Maldives Friendship Bridge opened in 2018, is more than a feat of engineering. It represents a significant injection of Gross Fixed Capital Formation (GFCF), the economic metric that measures investment in physical assets like infrastructure, which drives long-term growth.

In the Maldives, where tourism accounts for nearly a quarter of GDP, such investments are critical to sustaining economic momentum and addressing vulnerabilities like climate change and geographic isolation. The bridge, slated for completion in September 2026, is poised to transform the greater Malé region by slashing ferry travel times, boosting trade, and opening new avenues for commerce and tourism.

India, a regional powerhouse, is the linchpin of this project, providing both financial and technical support. Executed by Mumbai-based Afcons Infrastructure Limited, the Thilamale Bridge is funded through a mix of Indian grants and concessional loans, including a $400 million line of credit from the Export-Import Bank of India.

This partnership aligns with India’s Security and Growth for All in the Region (SAGAR) doctrine, which seeks to foster economic cooperation and maritime security across the Indian Ocean. For the Maldives, a nation of 1,200 coral islands grappling with rising sea levels, India’s investment is a lifeline, channeling capital into infrastructure that could triple economic growth in the region, according to officials here.

The Vaadhoo Channel’s seasonal swells and unpredictable currents have tested the project’s engineers, who have navigated logistical hurdles to install 1.7 kilometers of bridge segments, including three 140-meter navigation spans and 3.73 kilometers of marine viaducts.

The completion of the piling phase, described by Muththalib as the project’s most challenging, marks a turning point, bringing the bridge’s silhouette into sharp relief against the tropical horizon. For the Maldives, the bridge is a bold step toward economic diversification.

The nation’s GFCF, which reflects investments in infrastructure, machinery, and buildings, has historically been constrained by its small size and reliance on tourism. In 2023, the Maldives’ GFCF was estimated at just under $2 billion, a fraction of India’s $1.2 trillion in the same year. Yet, projects like the Thilamale Bridge signal a shift. By linking Malé, a bustling capital of 250,000, with Thilafushi, an industrial hub hosting waste management, warehousing and manufacturing, the bridge is expected to spur industrial growth and reduce logistical costs, which currently account for a significant share of business expenses in the Maldives.

India’s partnership with the Maldives transcends mere financing, acting as a cornerstone for the island nation’s development. Through initiatives like the $400 million currency swap agreement between the Reserve Bank of India and the Maldives Monetary Authority, India has bolstered the Maldives’ foreign exchange reserves, fostering economic stability and paving the way for transformative projects like the Thilamale Bridge.

This collaboration reflects a shared commitment to progress, knitting the two nations closer together. Under President Dr. Mohamed Muizzu’s leadership, the Maldives has embraced India’s support to fuel its economic aspirations, with the Thilamale Bridge standing as a symbol of this enduring alliance. While fiscal challenges, including a projected 2025 deficit of 14.5 percent of GDP, highlight the need for careful financial stewardship, India’s steadfast backing provides a foundation for resilience.

The bridge’s towering pillars, rising opposite Vilimalé’s shores, embody this shared vision, promising to unite the Maldives’ scattered islands with new pathways for trade, tourism, and opportunity. As the sun sets over the Vaadhoo Channel, the bridge’s silhouette gleams with possibility—a testament to the Maldives’ determination and India’s unwavering support, together forging a brighter, more connected future for the island nation.

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