India and Maldives discussing a free trade agreement

India and Maldives have started discussions for a free trade agreement, Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu mentioned in their press address after the bilateral and delegation-level talks here in New Delhi.

However, both leaders did not give further details about the bilateral trade agreement.

“To strengthen the economic ties between the nations, we have started to discuss the free trade agreement as well,” PM Modi said in his remarks.

Today, the RuPay card was launched in Maldives.

In the coming time, PM Modi said that work will be done to connect India and Maldives with UPI.

A key emphasis of the Indian government has been on ensuring that the benefits of the Unified Payments Interface are not limited to India only; other countries, too, benefit from it.

Both leaders also discussed the possibility of opening a new consulate in Bengaluru.

President Muizzu, in his remarks, noted that India is a key partner in the infrastructure development of Maldives

“I would like to thank PM Modi for the generous assistance for cooperation extended over the years,” Muizzu said.

“We look forward to concluding the Free Trade Agreement with India which will enable us to harness the full economic potential between our countries and to increase Indian investments in both our tourism and various sectors of development,” Muizzu added.

He said that India as a key partner has always stood by the Maldives during times of need. “Maldives will remain a true friend.”

Muizzu also invited PM Modi to visit Maldives next year.

Further, Muizzu said that they agreed on a comprehensive vision document charting the course of the bilateral relationship.

“A Vision for Comprehensive Economic and Maritime Security Partnership will encompass development cooperation, trade and economic partnerships, digital and financial initiatives, energy projects, health cooperation, as well as maritime and security cooperation,” Muizzu added.

Muizzu is on a five-day State visit to India. This is President Muizzu’s first bilateral visit to India. He had visited India in June 2024 to attend the swearing-in ceremony of Prime Minister Modi and the Council of Ministers.

President Muizzu will also visit Mumbai and Bengaluru where he would be attending business events.

Maldives is India’s key maritime neighbor in the Indian Ocean Region (IOR) and holds a special place in the Prime Minister’s vision of ‘SAGAR’ (Security and Growth for All in the Region) and India’s ‘Neighbourhood First Policy’.

The visit of President Muizzu to India after the recent visit of the External Affairs Minister to the Maldives is testimony to the importance that India attaches to its relations with the Maldives and is expected to lend further momentum to cooperation and robust people-to-people ties between the two countries.