The Minister of Economic Development and Trade, Mohamed Saeed, has highlighted that the Free Trade Agreement (FTA) between the Maldives and India underscores the commitment to deepening economic ties between the two nations.

The two countries exchanged a Memorandum of Understanding (MoU) to begin formal negotiations on the FTA, as part of the state visit of Indian Prime Minister Narendra Modi.

Minister Saeed represented the Maldives, while India was represented by India’s External Affairs Minister, Dr S. Jaishankar.

In a post shared on X, Minister Saeed welcomed Prime Minister Modi to the Maldives, stating that the initiation of FTA negotiations is a key step toward expanding trade and fostering economic collaboration.

He noted that the development aligns with President Dr Mohamed Muizzu’s liberal economic vision, which promotes open markets and strategic partnerships for mutual benefit.

Alongside the FTA, the Maldives and India signed an implementation agreement for the Unified Payments Interface (UPI) system and initiated work toward a Local Currency Settlement mechanism.

The Minister stated that these initiatives aim to reduce transaction costs, eliminate currency conversion barriers, and support smoother cross-border trade and financial flows.

According to the Ministry of Economic Development, the agreement is a new chapter in the longstanding trade relationship between the Maldives and India, expected to facilitate sustainable growth, enhance market access, and create new economic opportunities for both countries.