Minister of Economic Development and Trade, Mohamed Saeed has described the agreement to establish a Free Trade Agreement (FTA) between India and Maldives as a historic milestone in the economic and trade relations between the two countries.
The Minister made the remarks in a social media post following the signing of an agreement to commence negotiations on an FTA, which took place on Friday, as part of Indian Prime Minister Narendra Modi’s ongoing State Visit to the Maldives. The agreement aims to increase trade opportunities and establish a comprehensive administrative framework for economic cooperation between the two nations.
In his post, Minister Saeed said he was honoured to welcome Prime Minister Modi to the Maldives as both nations exchanged Terms of Reference to formally begin FTA negotiations. This milestone reflects both countries’ commitment to deeper economic ties and expanded trade opportunities, he said, adding that President Muizzu’s liberal economic vision for open markets and beneficial partnerships enable this historic collaboration.
The Minister further noted that the signing of the implementation agreement for India’s Unified Payments Interface (UPI) and the initiation of efforts toward Local Currency Settlement will further strengthen trade. These initiatives are expected to lower transaction costs, remove currency conversion hurdles, and paving the way for more seamless cross-border exchanges. Together, both countries are building foundations for sustained growth and shared prosperity, he said.
According to the Economic Ministry, 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. Trade facilitation measures such as 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 noted.