Maldives and India Begin Formal Negotiations on Free Trade Agreement

The Maldives and India have officially begun formal negotiations on a free trade agreement (FTA), with the first round of talks held on Monday, according to Minister of Economic Development, Transport and Trade Mohamed Saeed.

The negotiations mark a significant step in strengthening bilateral trade relations between the two neighbouring countries.

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The Terms of Reference (TOR) for the agreement were signed in March this year, establishing the framework and scope for the negotiations. The decision to begin discussions on the FTA was first agreed during Indian Prime Minister Narendra Modi’s official visit to the Maldives last year.

Speaking at a press conference at the President’s Office, Minister Saeed said both countries were committed to completing the negotiations as soon as possible. He said experts from the Maldives would work closely with the ministry, government agencies and private sector representatives throughout the process.

The minister said the Maldives would seek trade concessions for Maldivian products through the agreement, adding that such arrangements create greater opportunities for local businesses. He noted that the agreement is expected to provide businesses with benefits including duty concessions and improved market access.

Referring to the Maldives-China Free Trade Agreement, which came into effect in January 2025, Minister Saeed said it had enabled Maldivian businesses to access new opportunities, including the ability to sell products through the Alibaba online platform.

He added that the proposed agreement with India would provide Maldivian businesses with access to one of the world’s largest consumer markets.

In addition to the FTA with China, the Maldives has also signed a preferential trade agreement with Türkiye. Both countries are currently working on the necessary arrangements before the agreement enters into force.