Minister of Economic Development, Transport and Trade Mohamed Saeed said the Maldives and India are expected to establish a Free Trade Agreement (FTA) by the end of this year.
The Minister made the remarks while speaking at the “Iqthisaadhuge Dhefarai” forum organised by the Economic Ministry. The Terms of Reference (ToR) for the agreement were signed in March this year.
Minister Saeed said the Government is undertaking important initiatives to create greater economic opportunities for Maldivian youth and integrate the Maldives into the digital economy. In this regard, he noted that the Maldives has begun establishing links with major international platforms and that more than 400 Maldivian businesses have already been listed on platforms such as Alibaba through the “Authentic Maldives” initiative.
He added that one of the key objectives of the bilateral investment treaty currently being negotiated with India is to provide Maldivian youth with access to India's large market for their products. Saeed noted that India has made significant advances in the information technology and entertainment sectors, creating substantial opportunities for Maldivian youth developing software and applications.
The Minister also said that UPI services have now been introduced between the two countries. Describing UPI as a payment system used in advanced economies around the world, he expressed confidence that the FTA would open up significant opportunities before the end of this year.
“We believe that by the end of this year, we will be able to enter into a Free Trade Agreement with India. As we integrate into their markets and they understand our markets, if we give them all the benefits they seek while giving them equal access to our market, our market could become saturated. That would not be sustainable. We are moving forward with that balance,” Saeed said.
Saeed also said that projects worth USD 648 million are currently being undertaken for the development of various resorts under different agreements between the two countries.
The proposed Maldives-India FTA aims to expand trade opportunities and establish a comprehensive framework for strengthening economic ties between the two countries. The agreement is also expected to reduce trade barriers and create greater investment opportunities, further strengthening bilateral economic relations.
According to the Ministry, the FTA would increase cross-border trade and investment, while providing greater convenience for Indian tourists visiting the Maldives and Maldivian residents in India to conduct business transactions and make payments for goods and services.
While negotiations on the Maldives-India FTA are ongoing, the Maldives' Free Trade Agreement with China came into effect in January 2025. The Maldives also brought its Preferential Trade Agreement with Türkiye into effect on 1 August this year.