India and Maldives Deepen Economic Ties with FTA Discussions

The Foreign Secretary Vikram Misri has revealed that India and the Maldives are actively negotiating a Free Trade Agreement and an investment treaty. This move is designed to boost economic cooperation, alongside new ventures in renewable energy and fisheries. India is a major trading partner of the Maldives, with trade valued at nearly USD 500 million. Indian businesses have a strong presence in the Maldivian tourism industry. Misri also emphasized India’s role as a development partner, supporting various projects through concessional lines of credit and grants. Key projects include the Greater Male Connectivity Project, which will connect four islands, and initiatives related to infrastructure, social housing, and capacity building. Financial assistance, including currency swap arrangements and treasury bill subscriptions by the State Bank of India, also underscores the strong financial relationship. The two nations also collaborate on defence, security and capacity building programs. Prime Minister Modi’s upcoming visit will strengthen these ties further, particularly as the two countries celebrate the 60th anniversary of their diplomatic relations.