The Maldives expects to conclude a Free Trade Agreement (FTA) with India before the end of this year, Minister of Economic Development and Trade Mohamed Saeed has said, as the government moves to expand access to major overseas markets for Maldivian businesses and entrepreneurs.
Speaking at the “Iqthisaadhuge Dhefaraai” forum organised by the Economic Ministry, Saeed said negotiations on the proposed agreement are progressing, with both countries having signed the Terms of Reference (TOR) for the process in March.
“We believe that we will be able to enter into the Free Trade Agreement with India by the end of this year,” Saeed said.
The proposed agreement is expected to establish a broader framework for trade and investment between the two neighbouring countries, reducing barriers to commerce while creating new opportunities for businesses operating in both markets.
Saeed said one of the government’s priorities in pursuing closer economic ties with India is to provide Maldivian entrepreneurs, particularly young people working in emerging industries, with access to India’s significantly larger consumer market.
He highlighted India’s rapid development in technology, information technology and entertainment, saying these sectors could provide opportunities for Maldivians developing software, applications and other digital products.
The government is also pursuing a Bilateral Investment Treaty with India as part of efforts to create a more structured environment for investment between the two countries.
However, Saeed stressed that the government would seek to maintain a balance when negotiating market access, taking into consideration the significant difference in the size of the two economies.
“As we integrate Maldivians into these markets, if we give them full access to all the benefits they desire in our market without considering its smaller scale, it will not be sustainable. We are proceeding with that balance in mind,” he said.
Economic integration between the Maldives and India has already expanded into digital payments. India’s Unified Payments Interface (UPI) has been introduced between the two countries, providing another channel for cross-border transactions.
According to the Economic Ministry, a comprehensive FTA could further simplify payments and commercial transactions involving goods and services, benefiting Maldivians living or travelling in India as well as Indian visitors to the Maldives.
India has historically been one of the Maldives’ major trading partners and remains an important source of essential imports, including food, construction materials, medicines and other commodities.
The government expects the proposed FTA to expand bilateral trade, encourage investment and provide Maldivian businesses with greater access to the Indian market.
Saeed said the government’s wider economic strategy also involves connecting local entrepreneurs with major international commercial platforms.
More than 400 Maldivian entrepreneurs are now represented on platforms such as Alibaba through the Authentic Maldives initiative, according to the Minister. He said such efforts are intended to provide local businesses with greater access to international consumers while increasing participation in the digital economy.
Saeed also disclosed that resort development projects valued at approximately MVR 10 billion are currently being pursued through various agreements, as investment continues across the tourism industry.
The planned agreement with India comes as the Maldives expands its network of international trade arrangements.
The Maldives-China Free Trade Agreement entered into force on January 1, 2025, introducing tariff concessions across a wide range of goods traded between the two countries.
More recently, the Maldives-Türkiye Preferential Trade Agreement came into effect on August 1. The agreement provides tariff reductions and exemptions on selected goods while opening additional opportunities for Maldivian exports, including fisheries products.
The proposed agreement with India would represent another major step in the government’s effort to diversify trade partnerships and secure greater overseas market access for Maldivian businesses.
Saeed said the government expects the negotiations to reach that milestone before the end of 2026.
