Indian Minister announces plans to pursue Free Trade Agreement with Maldives

India and Maldives are in talks to establish a Free Trade Agreement (FTA) between the two countries, as confirmed by Maldives Minister of Economic Development and Trade Mohamed Saeed. The aim is to enhance trade activities and provide ease in conducting business between the nations.

This initiative by India comes amidst a diplomatic rift that began last year when President Muizzu, known for his pro-China stance, took office. The President had previously requested the withdrawal of Indian military personnel from the Maldives, a demand that was eventually met earlier this month.

Despite the absence of an official FTA, India has already offered concessions on various products to the Maldives, showcasing a commitment to strengthening economic ties. Bilateral trade between the two countries has been steadily increasing, with trade crossing the USD 500 million mark in 2022.

While details of the ongoing discussions between India and Maldives regarding the FTA remain undisclosed, it is evident that both nations are keen on further enhancing their cooperative ties in various sectors. The Maldives had previously entered into an FTA with China, which was criticized by the succeeding administration but has now been revived under President Muizzu’s leadership.

The potential FTA between India and Maldives signifies a significant step towards fostering stronger economic relations and promoting trade growth between the two countries. It remains to be seen how these deliberations will unfold and what benefits they will bring to both nations in the future.