The Maldives and India have commenced the first round of negotiations on the proposed Maldives–India Free Trade Agreement (FTA), taking a significant step towards expanding trade and investment between the two countries.

The Ministry of Economic Development, Transport and Trade announced that negotiations began on Monday, following months of preparatory work by both sides. The discussions come after the two countries agreed on the Terms of Reference (ToR) in March, which established the framework and key areas that will guide negotiations before a final agreement is concluded.

Efforts to establish the FTA began during Indian Prime Minister Narendra Modi's state visit to the Maldives in July 2025, when the two countries exchanged a Memorandum of Understanding to formally launch negotiations. The agreement was exchanged by Minister of Economic Development, Transport and Trade Mohamed Saeed and India's External Affairs Minister Dr S. Jaishankar in the presence of President Dr Mohamed Muizzu and Prime Minister Modi.

The process gained further momentum in May this year when Minister of Foreign Affairs Iruthisham Adam and India's Minister of Commerce and Industry Piyush Goyal discussed to fast-track negotiations during a bilateral meeting in New Delhi. 

Once concluded, the FTA is expected to reduce trade barriers, improve market access, facilitate cross-border investment and create new opportunities for businesses in both countries. 

The Maldives' first Free Trade Agreement was signed with China in 2017 and came into force in January 2025 after remaining inactive for several years. The agreement has since expanded market access and created new trade opportunities for Maldivian businesses.