India and the Maldives have successfully completed the inaugural round of negotiations for a proposed Free Trade Agreement (FTA). These crucial discussions took place virtually between June 29 and July 7, as confirmed by India's Ministry of Commerce and Industry.
Key Negotiators and Progress Made
The Indian delegation was led by Ujjwal Kumar Ghosh, Joint Secretary in the Department of Commerce, while the Maldivian side was headed by Chief Negotiator Yusuf Riza. Negotiators from both countries engaged in text-based discussions across eight technical sessions, covering a range of policy areas. The Ministry of Commerce and Industry reported that significant progress was achieved across all negotiating tracks, with broad convergence reached on several key issues.
Following the conclusion of the talks, Commerce and Industry Minister Piyush Goyal of India and Maldives' Minister of Economic Development, Transport and Trade Mohamed Saeed reviewed the progress on July 8. The ministers also assessed the status of other ongoing bilateral economic initiatives.
Deepening Economic Ties and Future Commitments
As India and the Maldives commemorate 60 years of diplomatic relations, both nations reaffirmed their commitment to expedite the conclusion of not only the proposed FTA but also a Bilateral Investment Treaty (BIT). Furthermore, they agreed to enhance cooperation in several sectors, including tourism, startups, digital payments, Micro, Small, and Medium Enterprises (MSMEs), and general trade, to foster new economic opportunities.
India remains the second-largest trading partner for the Maldives. According to data from the Commerce Ministry, bilateral trade between the two countries reached $771.76 million in the 2025-26 financial year, marking a 13.54% increase from the previous year. India's exports accounted for $458.71 million of this total, while imports from the Maldives stood at $313 million.
Goals of the Proposed FTA
The envisioned Free Trade Agreement is designed to strengthen economic ties by improving market access, facilitating investments, and expanding overall economic cooperation between India and the Maldives. The ministry stated that both countries are working towards a "broad-based, balanced and comprehensive agreement guided by the principles of fairness and reciprocity." This agreement is anticipated to contribute to sustainable economic growth in both nations, creating new avenues for businesses and investors.