Maldives Minister of Economic Development, Transport and Trade Mohamed Saeed has held bilateral discussions with India’s Minister of Commerce and Industry Piyush Goyal during an official visit to India, with the talks focusing on expanding trade, investment and broader economic cooperation between the two countries.
The meeting provided an opportunity for both ministers to review progress in the ongoing negotiations for the India-Maldives Free Trade Agreement, known as the IMFTA, as well as efforts to finalise a Bilateral Investment Treaty. The discussions also covered several proposed initiatives aimed at creating new opportunities for businesses, investors and entrepreneurs in both countries.
Minister Saeed, who visited India at the invitation of Minister Goyal, described the discussions as productive and constructive. He stated that the engagement reflected the shared vision of President Dr. Mohamed Muizzu and Indian Prime Minister Narendra Modi to strengthen the longstanding partnership between the Maldives and India through practical economic cooperation, increased commercial engagement and mutually beneficial investment.
The Ministry of Economic Development, Transport and Trade said the discussions focused on strengthening economic relations and reviewing the progress achieved in the IMFTA negotiations. The proposed agreement was initiated by President Dr. Muizzu during his official visit to India in 2024 as part of wider efforts to establish a more structured and forward-looking framework for bilateral trade.
The ministerial meeting followed the first formal round of free trade agreement negotiations, which was conducted virtually from June 29 to July 7, 2026. The negotiations are being guided by terms of reference signed by the two governments in March 2026, setting out the scope, procedures and priority areas for the proposed agreement.
Both governments have expressed their intention to conclude the negotiations by the end of 2026. Foreign Minister Iruthisham Adam previously stated that the Maldives and India would work towards signing the agreement during the year, subject to the successful completion of the required negotiations and domestic procedures.
The proposed free trade agreement is expected to establish clearer and more favourable conditions for the movement of goods and services between the two markets. It could also support cooperation in areas including investment, customs procedures, trade facilitation, standards, digital commerce, logistics and private-sector development, depending on the provisions ultimately agreed by both sides.
Minister Saeed has described the IMFTA as an important component of the government’s wider strategy to diversify the Maldivian economy and reduce its reliance on a single economic sector. Greater market access could enable Maldivian businesses to expand exports, develop new products and services, attract international partnerships and participate more actively in regional and global supply chains.
India is among the Maldives’ largest trading partners and represents one of the world’s largest consumer markets. Improved access to the Indian market could offer significant opportunities for Maldivian producers and service providers, particularly small and medium-sized enterprises seeking to reach a broader customer base.
The proposed Bilateral Investment Treaty is also expected to provide a stronger institutional framework for encouraging and protecting investments between the two countries. Once finalised, the treaty could contribute to greater investor confidence by establishing clearer principles for the treatment of investments, dispute resolution and cooperation between relevant authorities.
The final commercial and regulatory implications for Maldivian businesses will become clearer after the negotiations are completed and the agreed text is published. As the agreement remains under negotiation, its independent economic impact cannot yet be fully assessed. However, the continued progress demonstrates the commitment of both governments to developing a balanced framework that supports sustainable economic growth and delivers mutual benefits.
The discussions take place as the Maldives and India continue to build upon six decades of diplomatic relations. Bilateral ties have increasingly expanded into areas such as economic development, trade, investment, transport connectivity, infrastructure and private-sector cooperation, reflecting a renewed emphasis on practical partnerships that benefit the people and economies of both countries.
The latest ministerial engagement is expected to provide further momentum to the negotiations and support the development of a more diversified, resilient and internationally connected Maldivian economy, while strengthening the Maldives’ position as an attractive destination for trade and responsible investment.
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