Raajje24| Business Desk
Malé | July 23, 2025
India and the Maldives are in active discussions to establish a Free Trade Agreement (FTA), alongside a broader investment treaty, in a move that could mark a significant turning point in bilateral ties. The talks come just ahead of Indian Prime Minister Narendra Modi’s official visit to Malé, where he will be the guest of honour at the Maldives’ 60th Independence Day celebrations on July 26.
This will be Modi’s first visit to the Maldives since President Dr Mohamed Muizzu assumed office. The visit is widely viewed as a sign of thawing diplomatic relations, following months of tension earlier in the Muizzu administration.
Officials from both governments have confirmed that FTA negotiations are progressing, with additional focus on boosting cooperation in sectors like renewable energy and fisheries—two key pillars of the Maldivian economy. The proposed investment treaty aims to unlock new trade and development opportunities between the two countries.
Although Malé first proposed the FTA in May, New Delhi publicly acknowledged the initiative only recently. Both sides are reportedly aiming to finalise terms that offer mutual economic benefits.
India has also reaffirmed its financial support to the Maldives, a country grappling with heavy debt repayments. So far, New Delhi has provided a USD 400 million currency swap and an additional INR 30 billion (approximately USD 357 million), helping to stabilise the Maldives’ foreign exchange reserves.
Sources suggest that Modi’s visit may include new announcements on development cooperation and financial assistance—indicating a broader strategic reset in the relationship.
Ties between the two neighbours had cooled in the early days of the Muizzu presidency, following contentious statements and heightened focus on sovereignty after the president’s visit to China. However, a series of high-level exchanges—including two visits by President Muizzu to India—have laid the groundwork for a renewed diplomatic and economic partnership.
As Modi’s arrival nears, anticipation is growing over potential trade and investment deals that could shape the next phase of India-Maldives relations.
