Maldives and India Begin Free Trade Agreement Discussions

Maldives and India have officially initiated discussions to establish a Free Trade Agreement (FTA), as announced by India's Prime Minister Narendra Modi. This development occurred during a joint statement with President Dr. Mohamed Muizzu amid the president's ongoing visit to India.

During their meeting, Modi highlighted the importance of the FTA in expanding economic relations between the two nations. He noted that trade transactions could be conducted using local currencies, which underscores the close partnership between Maldives and India. Modi reaffirmed that the Maldives is not just a neighboring country but also a vital ally, emphasizing India’s commitment to supporting the Maldives.

The timing of these discussions coincides with the impending implementation of an FTA signed with China in 2014, set to take effect next year. Additionally, Maldives is moving forward with a Preferential Trade Agreement with Türkiye.

As part of the discussions, India has approved a facility for swapping USD 400 million and Rs. 30 billion in multiple withdrawals. President Muizzu’s visit marks his first official trip to India since taking office, during which he will engage in meetings across major cities to further strengthen bilateral trade relations.