India and Maldives Make Progress on Free Trade Agreement
In a significant advancement for bilateral trade, the India–Maldives Free Trade Agreement (FTA) negotiations have seen a successful first round. Conducted virtually between June 29 and July 7, 2026, this initiative aims to enhance economic collaboration and investment opportunities between the two nations.
The Indian delegation was led by Chief Negotiator Mr. Ujjwal Kumar Ghosh from the Department of Commerce. The Maldives team was represented by their Chief Negotiator Mr. Yusuf Riza. Throughout the discussions, both teams participated in eight technical sessions, focusing on various policy areas, resulting in substantial progress and broad alignment on key issues.
Ministerial Meetings Highlight Commitment
On July 8, 2026, Union Minister of Commerce and Industry, Shri Piyush Goyal, met with Maldivian Minister Mr. Mohamed Saeed, who oversees Economic Development, Transport, and Trade. This meeting reviewed the achievements of the ongoing economic initiatives, including the FTA negotiations. As the two countries celebrate 60 years of diplomatic relations, both ministers emphasized their eagerness to expedite the conclusion of the Bilateral Investment Treaty (BIT) alongside the FTA.
They also discussed plans to deepen cooperation in several sectors, including tourism, startups, digital payments, micro, small, and medium-sized enterprises (MSMEs), and trade. These areas are seen as vital for unlocking new opportunities for both countries.
Growing Economic Ties
India currently stands as the Maldives’ second-largest trading partner. In the fiscal year 2025–26, bilateral trade reached USD 771.76 million, a notable increase from USD 679.70 million in 2024–25, marking a growth of 13.54 percent.
The anticipated FTA is expected to bolster the economic relationship between India and the Maldives by improving market access, facilitating investments, and fostering greater economic cooperation. The agreement is being crafted with a focus on fairness and reciprocity, aiming for a balanced and comprehensive trade framework.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
