Malé | July 25, 2025 – Raajje24
In a major development in bilateral ties, President Dr Mohamed Muizzu and Indian Prime Minister Narendra Modi on Friday jointly announced the formal launch of negotiations for a Maldives–India Free Trade Agreement (IMFTA).
The announcement was made following high-level bilateral talks held as part of Prime Minister Modi’s official visit to the Maldives.
Details were later shared during a press conference held at Hotel Jen in Malé, conducted by senior Indian government officials.
As part of the outcomes from the bilateral talks, India has extended a new Line of Credit (LoC) worth MVR 8,637,196,410 (approximately INR ₹4,850 crore) to the Maldives. The credit line is intended to support infrastructure and development projects across the country.
According to a press statement issued by the Government of India at Hotel Jen, India has also reduced Maldives’ annual debt repayment obligations on previously issued Indian-funded credit lines, easing the country’s fiscal burden.
Speaking on the announcement, President Dr Muizzu expressed appreciation for India’s financial support and emphasised the significance of the Free Trade Agreement in enhancing economic growth, trade liberalisation, and job creation in the Maldives.
Prime Minister Modi reiterated India’s commitment to deepening economic ties with the Maldives, calling the FTA a milestone that will unlock greater trade opportunities and boost private sector collaboration between the two nations.
The launch of FTA negotiations and financial cooperation signals a renewed phase in Maldives–India relations, grounded in mutual respect and regional economic progress.
