The Ministry of Economic Development and Trade has stated that the India-Maldives Free Trade Agreement will bring new changes to trade relations and serve as a means to increase investment opportunities. The Economic Ministry has signed an agreement to begin consultations on establishing a free trade agreement between the Maldives and India. The agreement was signed on behalf of the Maldivian government by the Minister of Economic Development and Trade, Mohamed Saeed, and on behalf of the Indian government by India’s External Affairs Minister, Dr. S. Jaishankar.
Regarding this agreement, the Economic Ministry said that the purpose of the India-Maldives Free Trade Agreement is to establish a comprehensive administrative framework to increase trade opportunities and strengthen economic ties. The ministry added that this agreement will reduce trade barriers, increase investment opportunities, and further strengthen the economic relationship between the two countries.
The ministry stated that the free trade agreement will increase cross-border trade and investment, and provide additional conveniences for Indian tourists visiting the Maldives and Maldivian citizens living in India to conduct business transactions and pay for goods and services. Additionally, the FTA negotiations will be further strengthened by trade facilitation measures such as the Unified Payments Interface (UPI) and the enhancement of the Local Currency Settlement Mechanism, according to the ministry.
The Economic Ministry said that this important agreement will be a chapter that brings new changes to the long-standing trade relationship between India and the Maldives. They added that this will pave the way for sustainable progress, increase market access opportunities, and lead to permanent progress for both countries.
