India Initiates Efforts for Free Trade Agreement with Maldives

India and Maldives are currently in talks to create a Free Trade Agreement between the two countries, as confirmed by Minister of Economic Development and Trade Mohamed Saeed. This initiative by India is part of efforts to enhance trade activities and offer ease in business transactions between the two nations.

The move comes amidst a diplomatic row that began last year when President Muizzu, known for his pro-China leanings, demanded the withdrawal of Indian military personnel from the Maldives. Despite this, bilateral trade between India and Maldives has been steadily growing, with trade crossing the USD 500 million mark in 2022.

Even without an FTA in place, India has been offering concessions on various products to the Maldives, showcasing a commitment to strengthening economic ties. The recent discussions between Minister Saeed and Indian High Commissioner Munu Mahawar focused on further enhancing cooperation in multiple areas.

While Maldives had previously entered into an FTA with China during former President Abdulla Yameen Abdul Gayoom’s administration, the agreement was criticized by his successor and not honored. However, under President Muizzu’s leadership, the Maldives-China FTA has been revitalized, with the current administration expressing readiness to continue honoring the agreement as a symbol of strong relations between the two countries.

As deliberations for the India-Maldives FTA continue, both nations are looking forward to further strengthening their economic partnership and fostering mutual growth and development.