- The Maldives aims to conclude a Free Trade Agreement with India by the end of 2026, balancing market access with protection for its small domestic economy.
- The deal is expected to benefit young Maldivian entrepreneurs in digital products, software and applications by tapping India's IT and entertainment sectors.
- Related initiatives include a bilateral investment treaty, UPI payment services, e-commerce listings via Authentic Maldives, and USD 648 million in India-linked resort projects.
The Maldives is aiming to conclude a Free Trade Agreement with India by the end of 2026, with negotiations focused on giving Maldivian businesses access to India’s large market while safeguarding the country’s small domestic economy.
Economic Development, Transport and Trade Minister Mohamed Saeed said the agreement remains under negotiation after the two countries signed its Terms of Reference in March. Speaking at the Economic Ministry’s Iqthisaadhuge Dhefarai forum, the Minister said the Government is seeking a balanced arrangement that expands opportunities without leaving the domestic market overly exposed to competition.
The proposed agreement is expected to create new avenues for Maldivian businesses, particularly young entrepreneurs developing digital products, software and applications. Minister Saeed said India’s established information technology and entertainment sectors could provide a larger customer base for Maldivian firms operating in these areas.
The Government is also working to connect local businesses with international e-commerce channels through the Authentic Maldives initiative. More than 400 Maldivian businesses have been listed on platforms including Alibaba, according to the Minister.
Minister Saeed said a separate bilateral investment treaty being negotiated with India is intended to support Maldivian businesses seeking to enter the Indian market. The introduction of UPI payment services between the two countries is also expected to make payments and business transactions easier for Indian visitors in the Maldives and Maldivian residents in India.
He noted that the central consideration in the FTA negotiations is ensuring reciprocal access without allowing the Maldivian market to become saturated by imports or foreign businesses.
Minister Saeed also said resort development projects valued at USD 648 million are currently being undertaken under various agreements between the Maldives and India.
The proposed FTA is expected to reduce trade barriers, support investment and facilitate cross-border commercial activity. It would follow other recent trade agreements entered into by the Maldives, including the FTA with China, which took effect in January 2025, and the Preferential Trade Agreement with Türkiye, which came into force on 1 August.
