New Delhi: India and the Maldives have concluded the first round of negotiations for a proposed Free Trade Agreement (FTA), marking a significant step in strengthening bilateral trade and investment ties. Held virtually from June 29 to July 7, 2026, the discussions covered eight policy areas, with both sides reporting substantial progress and broad convergence on several key issues.
The inaugural round brought together negotiating teams led by Ujjwal Kumar Ghosh, Joint Secretary in India’s Department of Commerce, and Yusuf Riza, the Maldives’ Chief Negotiator. Over eight technical sessions, officials engaged in text-based discussions aimed at laying the foundation for a comprehensive trade agreement that supports long-term economic cooperation.
The progress of the negotiations was also reviewed during a meeting on July 8 between India’s Minister of Commerce and Industry, Piyush Goyal, and Mohamed Saeed, the Maldives’ Minister of Economic Development, Transport and Trade. The ministers assessed the broader economic partnership between the two countries and reaffirmed their commitment to fast-tracking both the proposed Free Trade Agreement and the Bilateral Investment Treaty (BIT).
Beyond the trade pact, the two sides agreed to deepen collaboration in several priority sectors, including tourism, startups, digital payments, micro, small and medium enterprises (MSMEs), and broader trade facilitation. The discussions coincided with the 60th anniversary of diplomatic relations between India and the Maldives, adding further momentum to the bilateral engagement.
Trade between the two countries has continued to expand. During 2025-26, bilateral trade reached US$771.76 million, compared with US$679.70 million in 2024-25, representing a 13.54% increase. India remains the second-largest trading partner of the Maldives, underscoring the growing commercial relationship between the neighbouring nations.
Officials believe the proposed agreement could improve market access, encourage investment and create new opportunities for businesses in both countries. The FTA is expected to support stronger economic integration while promoting balanced and mutually beneficial trade based on the principles of fairness and reciprocity.
With the first phase of negotiations now complete, both governments are expected to continue discussions toward finalising a broad-based trade agreement that reflects their shared economic priorities and long-term partnership.
Source: This article is based on an official press release issued by the Press Information Bureau, Ministry of Commerce & Industry, Government of India
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