‘India-Maldives FTA negotiations making steady progress’

The Indian High Commission in the Maldives has announced that negotiations on the India-Maldives Free Trade Agreement (IMFTA) is making steady progress.

In a statement on Friday, the High Commission said technical teams from both countries are working together to expand market access and further strengthen economic relations. The Commission described the initiative as an important step towards creating new commercial opportunities between the two nations.

The Ministry of Economic Development and Trade stated that the agreement is primarily aimed at removing trade barriers and creating a more favorable environment for bilateral investment. Negotiations on the agreement have been underway for an extended period.

Advancing the India-Maldives Free Trade Agreement (#IMFTA)!

Teams from India and Maldives are successfully continuing #IMFTA negotiations with shared enthusiasm to enhance market opportunities and deepen bilateral economic cooperation.@em_saeed@CimGOI @MoEDmv@DoC_GoI pic.twitter.com/BLC6auY4Zj

— India in Maldives (@HCIMaldives) September 25, 2026

The first round of formal negotiations, held from June 29 to July 7, consisted of eight technical sessions covering eight separate sectors. The Indian delegation was led by Ujjwal Kumar Ghosh, Joint Secretary at the Department of Commerce, while the Maldivian delegation was headed by Chief Negotiator Yoosuf Riza.

Following the technical sessions, India’s Minister of Commerce and Industry, Piyush Goyal, and Maldives Minister of Economic Development and Trade, Mohamed Saeed, met on July 8 to assess the progress made in the negotiations.

India is currently the Maldives’ second-largest trading partner. Official statistics show that bilateral trade amounted to USD 771.76 million during the 2025-2026 period, representing a 13.54 percent increase compared with the previous year. During the same period, Indian exports to the Maldives totaled USD 458.71 million, while Maldivian exports to India stood at USD 313 million.

Minister Mohamed Saeed has previously said that the government aims to conclude the agreement by the end of this year. In parallel, efforts are underway to introduce a Unified Payments Interface (UPI) system between the two countries and finalize a Bilateral Investment Treaty.

The decision to pursue a Free Trade Agreement was reached during President Dr. Mohamed Muizzu’s state visit to India in 2024. The Terms of Reference (TOR) for the agreement were subsequently signed in March this year.

The Economic Ministry said the IMFTA would provide Maldivian businesses, particularly those operating in digital products and software development, with unprecedented access to India’s vast market. The ministry also highlighted the potential for substantial benefits to the fisheries sector and the creative economy.

The government is also working through ‘Authentic Maldives’ to facilitate the listing of more than 400 local businesses on international platforms such as Alibaba. The Ministry said finalizing the agreement would provide significant momentum to the government’s broader policy of economic diversification.