Maldives and India Target Free Trade Agreement by End of 2024

The Maldives and India are on track to establish a Free Trade Agreement (FTA) by the end of this year, a move expected to significantly boost bilateral trade and create new economic pathways for local entrepreneurs. Minister of Economic Development, Transport and Trade Mohamed Saeed announced the timeline during the “Iqthisaadhuge Dhefarai” forum organized by the Economic Ministry. The groundwork for the agreement began in March with the signing of the Terms of Reference. According to Minister Saeed, a primary goal of the bilateral investment treaty is to provide Maldivian youth with direct access to India's vast consumer market. He specifically highlighted India's leadership in information technology and entertainment as a catalyst for Maldivian software developers and app creators to scale their businesses internationally. Beyond trade in goods, the two nations are deepening financial integration. The Unified Payments Interface (UPI) has already been introduced between the countries, simplifying transactions for Indian tourists in the Maldives and Maldivian residents in India. This digital integration aligns with a broader government strategy to pivot the Maldives toward a digital economy, evidenced by the “Authentic Maldives” initiative which has already listed over 400 local businesses on global platforms like Alibaba. Minister Saeed emphasized that the government is negotiating the FTA with a focus on sustainability, ensuring that the Maldivian market is not oversaturated while providing India with the access it seeks. "We are moving forward with that balance," the Minister stated, noting that the agreement must protect local interests while fostering growth. The economic partnership extends into infrastructure and tourism, with projects valued at USD 648 million currently underway for resort development. The proposed FTA is expected to reduce trade barriers and streamline investment frameworks, mirroring recent trade efforts by the Maldives, including a Free Trade Agreement with China that took effect in January 2025 and a Preferential Trade Agreement with Türkiye enacted in August.