The India-Maldives Free Trade Agreement (FTA) will mark a significant turning point in trade relations between the two countries, and will serve as an instrument for increasing investment opportunities, the Ministry of Economic Development and Trade has said.
On Friday, the Ministry of Economic Affairs signed a Memorandum of Understanding (MoU) on the establishment of a free trade agreement between India and Maldives. The agreement was signed by the Minister of Economic Development and Trade, Mohamed Saeed, on behalf of the Maldivian government, while India’s Minister of External Affairs, Dr S Jaishankar signed on behalf of the Indian government.
According to the Economic Ministry, the objective of the India-Maldives Free Trade Agreement is to establish a comprehensive administrative framework that will enhance trade opportunities and strengthen economic ties. The agreement aims to further strengthen the economic partnership between both countries by reducing trade barriers and increasing investment opportunities, the Ministry said.
The FTA is expected to boost cross-border trade and investment, and enable smoother business transactions and payments for Indian tourists visiting the Maldives as well as Maldivian citizens residing in India.
In addition, trade facilitation measures such as India’s Unified Payments Interface (UPI) and the strengthening of the local currency settlement mechanism will complement the FTA talks, the Ministry said.
The Economic Ministry added that the landmark agreement will mark a new chapter in the long-standing trade relationship between India and the Maldives. This will facilitate sustainable economic growth, increase market access and enhance trade efficiency for both nations, the Ministry added.