Maldives and India set course for FTA
India and Maldives are working to develop an FTA and investment treaty along with cooperation in renewable energy
India, Maldives flag
The government of India has revealed that work is underway to develop a Free Trade Agreement (FTA) with the government of Maldives.
On Tuesday, India's Foreign Secretary Vikram Misri told reporters that discussions are underway to establish an investment treaty between the two neighboring countries.
Misri also added that consultations are being held between the two countries regarding cooperation in new areas such as renewable energy.
While relations between the two countries had soured due to President Dr. Mohamed Muizzu's "India Out" campaign during his opposition days and some anti-India actions after coming to power, the Muizzu administration has significantly changed its tone and is working to strengthen ties with India.
As such, Modi will visit the Maldives on Friday as the guest of honor for the Maldives' 60th Independence Day celebrations, at the invitation of President Muizzu.
This is Modi's first trip to the Maldives since President Muizzu assumed office in November 2023.
According to India's Ministry of External Affairs, Prime Minister Modi will make a visit from July 25 to 26 at the invitation of President Muizzu. This is the Prime Minister's third visit to the Maldives, and the first visit by a head of state or government during President Muizzu's administration.
Discussions on a potential FTA between the Maldives and India have surfaced at a time Maldives has established a free trade agreement with China already.
The China-Maldives Free Trade Agreement is the first free trade agreement the Maldives entered with a foreign country. The government then stated that the agreement's purpose was to diversify the Maldivian economy into different sectors and to find new market opportunities for Maldivian products and businesses. It was also said that the agreement would further strengthen the economic ties between the two countries in the future. However, critics have stated that apart from a decrease in import duty revenue for the Maldives, no other changes have been noted as a result of the agreement so far, which came into effect in January 2025.
