Maldives’ Minister of Economic Development and Trade, Mohamed Saeed, has hailed the initiation of Free Trade Agreement (FTA) negotiations between India and the Maldives as a historic turning point in the countries’ economic partnership.
The announcement follows the signing of an agreement to officially commence FTA discussions during Indian Prime Minister Narendra Modi’s State Visit to the Maldives. The move is intended to expand trade opportunities and establish a robust administrative framework for enhanced bilateral economic cooperation.
In a social media post, Minister Saeed expressed his honour in welcoming Prime Minister Modi and witnessing the formal exchange of Terms of Reference to begin FTA talks. He emphasized that the agreement reflects a shared commitment to strengthening economic ties and unlocking greater trade potential. Saeed also highlighted President Muizzu’s liberal economic policy vision, which he said fosters open markets and strategic partnerships—paving the way for this landmark collaboration.
The Minister also pointed to the signing of the implementation agreement for India’s Unified Payments Interface (UPI) in the Maldives and the launch of efforts towards establishing a Local Currency Settlement mechanism. These initiatives are set to lower transaction costs, eliminate currency exchange barriers, and facilitate smoother cross-border financial transactions.
According to the Ministry of Economic Development, the proposed FTA will enhance bilateral trade and investment, simplify financial dealings for Indian tourists in the Maldives and Maldivian citizens in India, and support a more integrated economic environment. Complementary trade facilitation measures, such as the UPI rollout and local currency settlement, are expected to reinforce the impact of the FTA.
The Ministry added that this milestone agreement represents a new chapter in the enduring trade relationship between India and the Maldives—laying the groundwork for sustainable economic growth, improved market access, and greater trade efficiency for both nations.