India and Maldives Complete First Round of FTA Negotiations

The ministers reaffirmed their commitment to accelerating negotiations on both the Free Trade Agreement and the Bilateral Investment Treaty (BIT).

India and the Maldives have completed the first round of negotiations for a proposed Free Trade Agreement (FTA), marking an important step towards expanding bilateral trade, investment and economic cooperation. The discussions, held virtually between 29 June and 7 July 2026, saw both countries make progress across several key negotiating areas as they work towards a comprehensive trade pact. The negotiations come during a milestone year as India and the Maldives celebrate 60 years of diplomatic relations, adding fresh momentum to efforts to deepen their economic partnership.

Negotiators make progress across key policy areas

India's delegation was led by Ujjwal Kumar Ghosh, Joint Secretary in the Department of Commerce, while the Maldivian team was headed by Chief Negotiator Yusuf Riza. During the first round, officials from both countries held text-based discussions across eight technical sessions covering eight policy areas. According to the Ministry of Commerce and Industry, the negotiations resulted in substantive progress, with both sides reaching broad convergence on several issues. The proposed agreement is intended to improve market access for businesses, encourage greater investment and create a stronger framework for expanding trade between the two neighbouring countries.

Ministers reaffirm commitment to conclude FTA and investment treaty

Following the negotiations, Union Commerce and Industry Minister Piyush Goyal met Maldives Minister of Economic Development, Transport and Trade Mohamed Saeed on 8 July 2026 to review the progress of ongoing bilateral economic initiatives.

The ministers reaffirmed their commitment to accelerating negotiations on both the Free Trade Agreement and the Bilateral Investment Treaty (BIT). They also agreed to strengthen cooperation in tourism, startups, digital payments, micro, small and medium enterprises (MSMEs) and broader trade and investment activities. The discussions reflected the shared intention of both governments to expand commercial ties while creating new opportunities for businesses and investors in both countries.

Growing trade expected to receive further boost

India remains the second-largest trading partner of the Maldives, with bilateral trade continuing to grow steadily. Trade between the two countries reached USD 771.76 million in 2025-26, up from USD 679.70 million in 2024-25, representing a 13.54% increase. The proposed FTA is expected to build on this growth by reducing trade barriers, improving investment flows and encouraging closer economic cooperation. Both governments said they are working towards a broad-based, balanced and comprehensive agreement guided by the principles of fairness and reciprocity, to support sustainable economic growth in both countries.