The first round of negotiations for a free trade agreement between India and Maldives started on Monday and is set to run until July 7. The Commerce Ministry revealed that both countries aim to finalize and sign the agreement by the end of this year. The talks are being conducted virtually, with a focus on reducing tariffs, simplifying trade regulations, and promoting cross-border services and investments.
India and Maldives are expediting their Free Trade Agreement negotiations, with the Terms of Reference (ToR) already established to define the agreement’s scope. Foreign Minister Iruthisham Adam of Maldives and Indian External Affairs Minister S. Jaishankar met to accelerate the negotiations, emphasizing the importance of enhancing commercial ties as both nations mark 60 years of diplomatic relations.
The trade discussions are part of a broader strategy for economic and financial integration, which includes initiatives like the RuPay card implementation, local currency trade, and Unified Payments Interface (UPI) integration. Maldives’ Economic Development and Trade Minister Mohamed Saeed expressed optimism that the agreement will open up new opportunities for Maldivian businesses and strengthen economic relations between the two countries.
The Free Trade Agreement was initially announced during President Dr. Mohamed Muizzu’s visit to India in 2024, signaling the start of negotiations between the two governments. Minister Saeed highlighted that this agreement aligns with the government’s economic diversification strategy to reduce dependency on a single sector. India, being a significant trading partner for Maldives and a major consumer market globally, is expected to offer easier market access for Maldivian products through this agreement.
