India has stepped up its development assistance to the Maldives after the two leaders held talks in New Delhi in a bid to repair strained ties that saw the president of the Indian Ocean archipelago forging closer relations with China.

Maldives President Mohamed Muizzu was given a red carpet welcome on his first state visit to India Monday, a trip Prime Minister Narenda Modi said marked a "new chapter" to reset troubled ties.

India has agreed to extend hundreds of millions of dollars in financial support to the Maldives to help strengthen its struggling economy. The deal was announced after Maldives President Mohammed Muizzu held talks with Prime Minister Narendra Modi during his five-day visit to India.