India and Maldives have commenced discussions for a free trade agreement, announced Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu during a joint press conference following their bilateral and delegation-level talks in New Delhi.
While the leaders did not provide specific details regarding the trade agreement, PM Modi highlighted its significance in enhancing economic ties between the two nations. “To strengthen the economic ties between the nations, we have started to discuss the free trade agreement as well,” he stated.
Launch of RuPay Card and Future Initiatives
During the press briefing, PM Modi also announced the launch of the RuPay card in the Maldives and indicated plans to connect India and Maldives through the Unified Payments Interface (UPI) in the near future. He emphasized the Indian government’s commitment to ensure that the benefits of UPI extend beyond India, allowing other countries to benefit as well.
President Muizzu expressed gratitude to PM Modi for India’s generous assistance in the Maldives’ infrastructure development over the years, affirming India’s role as a crucial partner. “We look forward to concluding the Free Trade Agreement with India, which will enable us to harness the full economic potential between our countries and to increase Indian investments in both our tourism and various sectors of development,” he said.
The Maldivian President also extended an invitation for PM Modi to visit the Maldives next year and mentioned their agreement on a comprehensive vision document aimed at enhancing bilateral relations. This document encompasses development cooperation, trade partnerships, digital initiatives, energy projects, health cooperation, and maritime security cooperation.
President Muizzu is on a five-day state visit to India, marking his first bilateral trip since assuming office. He had previously attended PM Modi’s swearing-in ceremony in June 2024. His itinerary includes visits to Mumbai and Bengaluru, where he will participate in business events.
Maldives, as a key maritime neighbor in the Indian Ocean Region (IOR), holds a special place in India’s vision of ‘SAGAR’ (Security and Growth for All in the Region) and aligns with India’s ‘Neighbourhood First Policy.’ The recent visit of Maldives’ External Affairs Minister to India underscores the importance of the relationship between the two nations and is expected to further enhance cooperation and people-to-people ties.
