Trade Agreement – India and Maldives Complete First Round of FTA Negotiations Successfully
Trade Agreement – India and the Maldives have successfully wrapped up the first round of negotiations for a proposed Free Trade Agreement (FTA), marking a significant step toward strengthening economic ties between the two neighbouring countries. The government announced on Tuesday that the discussions concluded on a positive note, with negotiators making meaningful progress across several key areas aimed at boosting trade and investment.
Bilateral trade records steady growth
Economic relations between India and the Maldives have continued to expand in recent years. India remains the Maldives’ second-largest trading partner, while bilateral trade has shown healthy growth. Official figures indicate that trade between the two countries reached $771.76 million during 2025–26, compared with $679.70 million in 2024–25, reflecting an annual increase of 13.54 percent.
The steady rise in trade underscores the growing commercial relationship and provides additional momentum for advancing discussions on a comprehensive trade agreement.
Negotiating teams discuss multiple policy areas
According to the Ministry of Commerce, officials from both countries participated in detailed text-based negotiations covering eight technical sessions. These discussions focused on eight separate policy areas considered essential for shaping the proposed agreement.
The ministry said that both delegations achieved substantial progress during the talks and reached broad convergence on several important issues. India’s delegation was headed by Chief Negotiator Ujjwal Kumar Ghosh, Joint Secretary in the Department of Commerce, while the Maldivian team was led by Chief Negotiator Yusuf Riza.
The successful completion of the opening round is expected to provide a strong foundation for future negotiations as both governments work toward a balanced and mutually beneficial agreement.
Ministers review progress during bilateral meeting
The negotiations followed a recent meeting between India’s Commerce and Industry Minister Piyush Goyal and Maldives Minister of Economic Development, Transport and Trade Mohamed Saeed.
During their discussions, the two ministers reviewed the progress of ongoing economic cooperation, including developments related to the proposed India–Maldives Free Trade Agreement. Both sides expressed satisfaction with the pace of engagement and reaffirmed their intention to maintain momentum in the negotiation process.
The meeting also highlighted the importance of expanding cooperation beyond traditional trade by encouraging investment and supporting broader economic partnerships.
Diplomatic milestone strengthens economic cooperation
This year marks the 60th anniversary of diplomatic relations between India and the Maldives, adding further significance to the ongoing negotiations. As part of the commemorative year, both governments reiterated their commitment to accelerating discussions on both the Bilateral Investment Treaty (BIT) and the Free Trade Agreement.
Officials also agreed to strengthen collaboration in several priority sectors, including tourism, startups, digital payments, micro, small and medium enterprises (MSMEs), and broader commercial activities. These sectors are viewed as offering considerable potential for creating new business opportunities and supporting long-term economic development in both countries.
FTA expected to improve market access and investment
The Ministry of Commerce stated that the proposed agreement is intended to deepen bilateral economic engagement by improving market access, encouraging cross-border investment and facilitating stronger commercial cooperation.
The ministry added that both countries are working toward a comprehensive and balanced agreement guided by the principles of fairness, reciprocity and shared economic interests. Once finalised, the FTA is expected to contribute to sustainable economic growth while creating a more predictable and supportive environment for businesses operating in both markets.
Negotiations are expected to continue in the coming months as officials seek to resolve outstanding issues and move closer to finalising the agreement.