This agreement will strengthen bilateral economic ties by reducing trade barriers, facilitating investment flows, and promoting greater integration between the two countries.
Ministry of Economic Development
The Governments of the Republic of Maldives and the Republic of India have formally agreed to commence negotiations for a Free Trade Agreement (FTA), building on the positive outcomes of the meeting between President Dr. Mohamed Muizzu and Prime Minister Shri Narendra Modi, during the President’s successful state visit to India in October 2024. This landmark initiative was formalised through the exchange of Terms of Reference (TOR) during Prime Minister Modi's state visit to the Maldives.
The proposed Maldives-India FTA aims to establish a comprehensive institutional framework for trade liberalisation and deeper economic cooperation. This agreement will strengthen bilateral economic ties by reducing trade barriers, facilitating investment flows, and promoting greater integration between the two countries.
The negotiation of an FTA would be further supported by trade-facilitating measures, including integration with the Unified Payments Interface (UPI) and a streamlined local currency settlement mechanism. These initiatives will simplify payment processes, boost cross-border trade and investment and provide greater convenience for Indian tourists visiting the Maldives and Maldivian citizens residing in India in conducting business transactions and making payments for goods and services.
This important milestone marks a transformative chapter in the longstanding Maldives-India trade relations, creating pathways for sustainable growth, enhanced market access, and enduring prosperity for both nations.
