Work underway to finalize India-Maldives investment agreement: Saeed

Minister of Economic Development and Trade Mohamed Saeed has announced that negotiations for a proposed investment agreement between India and the Maldives have concluded, with work now underway to finalize the pact.

Minister Saeed, who is currently on an official visit to India, announced this in a post on X.

According to Indian media reports, work is currently underway to finalize the necessary legal reviews and documentation required prior to the signing of this agreement.

Furthermore, negotiations regarding the establishment of a Free Trade Agreement (FTA) between the two nations have now reached an advanced stage.

Maldives' Minister of Economic Development and Trade, Mohamed Saeed, who is currently on an official visit to India, has met with India’s Minister of Commerce and Industry, Piyush Goyal, to discuss these matters.

Following the meeting, Minister Saeed stated that negotiations for the Free Trade Agreement are progressing rapidly. He further noted that discussions regarding the Bilateral Investment Treaty (BIT) have been concluded, and the process of finalizing the legal formalities is currently underway.

Indian Minister Piyush Goyal stated that the investment agreement, followed by the subsequent signing of a Free Trade Agreement (FTA), will further strengthen the ties between the citizens and business communities of both nations.

Indian media reports indicate that both countries are working to expedite the signing of a bilateral investment agreement and a free trade agreement. Furthermore, it was reported that the two ministers discussed strengthening cooperation in tourism, startups, and digital payment systems, as well as the small and medium enterprise (SME) sector.

A Bilateral Investment Treaty (BIT) is a formal agreement designed to protect and promote investments between two nations. India has recently established similar investment treaties with several countries, including Israel and the United Arab Emirates.

This agreement is expected to bolster bilateral investments between the two nations. According to official statistics, India received $12.65 million in Foreign Direct Investment (FDI) from the Maldives between April 2000 and March 2024.

India and the Maldives concluded a round of negotiations regarding a potential free trade agreement on July 7.

According to reports, the Free Trade Agreement will significantly reduce or entirely eliminate customs duties and taxes on the import of goods between the two countries.

Bilateral trade between the two nations rose to $771.76 million in the 2025-26 fiscal year, marking a 13.5 percent increase from the $690 million recorded in 2024-25. This figure comprises $458.71 million in exports from India to the Maldives and $313 million in imports from the Maldives to India.

India is the Maldives' most significant trading partner.

The Maldives' primary exports to India consist largely of scrap metal. In contrast, India's exports to the Maldives encompass a broad range of goods, including engineering and industrial products, pharmaceuticals, and specialized equipment such as radar systems. Other major imports from India include construction materials like stone, aggregates, and cement, as well as essential agricultural commodities including rice, spices, fruits, vegetables, and eggs.

The first trade agreement between India and the Maldives was signed in 1981. Under this agreement, India provides the Maldives with essential food commodities.