The Maldives and India are expected to finalise a free trade agreement (FTA) in the near future, according to Minister of Economic Development Mohamed Saeed. Speaking in an interview with MMTV on Monday night, Minister Saeed stated that both Maldivian President Dr Mohamed Muizzu and Indian Prime Minister Narendra Modi had expressed their interest in signing an FTA during President Muizzu’s state visit to India in October last year.
According to Minister Saeed, President Muizzu is focused on securing trade agreements with major global markets, ensuring that any such deals benefit Maldivians. He pointed to the preferential trade agreement signed with Türkiye in November last year and the FTA with China, which came into effect at the start of this year.
Minister Saeed noted that these agreements would lead to significant tariff reductions on Maldivian exports. Under the China-Maldives FTA, Maldivian businesses can now export 296 types of seafood products at zero tariff, creating new opportunities for local exporters.
Highlighting the Maldives’ heavy dependence on imports, Minister Saeed stated that trade agreements could help reduce this reliance over time while boosting the country’s exports. However, he emphasised that the immediate priority should be eliminating barriers that prevent Maldivian products from reaching international markets.
The minister also addressed concerns about the country’s dependence on tourism, describing it as one of the most vulnerable industries. He warned that external shocks to the sector pose a significant risk to the Maldivian economy, making diversification through trade agreements even more critical.
India previously stated in May last year that the Maldives had not formally proposed signing an FTA. However, New Delhi had indicated that it would consider the proposal if one was made. Relations between the two countries have seen a marked improvement since then, paving the way for trade discussions to progress.
