India and the Maldives have agreed to begin discussions to establish a Free Trade Agreement (FTA) between the two countries, Indian Prime Minister Narendra Modi announced today.
The announcement came during a joint statement with President Dr. Mohamed Muizzu, who is currently on an official visit to India. Prime Minister Modi stated that during their talks, both leaders discussed working together across various sectors, including strengthening economic ties.
A key outcome of the discussions was the decision to initiate talks on the FTA, which aims to further expand economic cooperation between the neighboring nations. Modi also highlighted that trade transactions between India and the Maldives could potentially be conducted in local currencies. He emphasized the close relationship between the two countries, describing the Maldives as not just a neighbor but a strong ally, and reaffirmed India’s commitment to supporting the Maldives whenever needed.
"India has fulfilled its responsibility as a neighbor," Modi remarked during the statement.
These FTA discussions come as the Maldives' 2014 Free Trade Agreement with China is set to be implemented next year. The Maldives has also moved forward with a Preferential Trade Agreement with Türkiye.
Following the talks, India approved a currency swap facility of USD 400 million and Rs. 30 billion, which will be disbursed through multiple withdrawals.
During his visit, President Muizzu, along with First Lady Sajidha, will travel to New Delhi, Agra, Mumbai, and Bangalore to attend official meetings focused on strengthening bilateral trade relations.
This marks President Muizzu’s first official visit to India since assuming office. However, he previously attended Prime Minister Narendra Modi's swearing-in ceremony for a third term in June, where the two leaders also discussed bolstering bilateral relations.
