India and the Maldives are currently in discussions to establish a Free Trade Agreement (FTA), alongside a broader investment treaty, as part of renewed efforts to strengthen economic and diplomatic ties. The development comes ahead of Indian Prime Minister Narendra Modi’s official visit to Malé, where he is set to attend the Maldives’ 60th Independence Day celebrations as guest of honour.
Modi’s visit, scheduled for 25–26 July, marks his first to the Maldives under the administration of President Dr Mohamed Muizzu. It is expected to signal a shift towards greater cooperation following a period of strained relations earlier in the Muizzu presidency.
Officials from both countries have confirmed that talks are under way not only on the FTA, but also on enhancing cooperation in sectors such as renewable energy and fisheries. The planned investment treaty is aimed at opening further opportunities for trade and development between the two countries.
The Maldivian government initially proposed the FTA in May this year, although India only publicly acknowledged the proposal more recently. Negotiations are now reported to be progressing, with both sides keen to conclude terms that would benefit their respective economies.
In addition to trade discussions, India has reaffirmed its commitment to supporting the Maldives’ financial stability. The country faces significant external debt repayments over the coming years. India has already extended currency swap support totalling USD 400 million, as well as an additional INR 30 billion—approximately USD 357 million. These funds have played a role in boosting the Maldives’ foreign exchange reserves.
As India explores further avenues to assist the Maldives financially, the upcoming visit by Prime Minister Modi is expected to include new announcements on development cooperation and support measures. Both governments have positioned this visit as a turning point in bilateral relations, moving past previous tensions.
Relations between Malé and New Delhi had cooled in the early months of President Muizzu’s term, particularly after social media controversies and strong rhetoric on sovereignty following his visit to China. However, both sides have since engaged in multiple high-level exchanges aimed at repairing ties, including two visits by Muizzu to India.
With Modi’s arrival now imminent, attention is focused on what concrete agreements may emerge—and whether they will reflect a lasting reset in India-Maldives relations.
