India Seeks Free Trade Agreement With Maldives, Discussions Underway
Date
5/27/2024 2:18:15 PM
(MENAFN- KNN India) New Delhi, May 27 (KNN) The Maldives government revealed on Saturday that India has initiated efforts to establish a bilateral Free Trade Agreement (FTA) between the two nations, with deliberations currently ongoing.
Mohamed Saeed, Minister of Economic Development and Trade, stated in a press conference, "India desires to have a Free Trade Agreement with Maldives, in addition to the existing South Asian Free Trade Agreement (SAFTA)."
India's reported pursuit of an FTA with Maldives comes amid an ongoing diplomatic rift between the two countries since November 2023, when the pro-China leaning President Muizzu assumed office.
Within hours of his inauguration, he had demanded the withdrawal of Indian military personnel from Maldives, which was completed earlier this month with their replacement by civilians.
Despite the absence of an FTA, India has offered trade concessions on several products to Maldives, according to Minister Saeed.
The 1981 India-Maldives trade agreement already provides for the export of essential commodities, and bilateral trade surpassed USD 500 million in 2022, growing from USD 300 million in 2021, as per Indian High Commission records.
While disclosing India's FTA proposal, Saeed did not provide further details about his recent high-level meeting with Indian High Commissioner Munu Mahawar, where they discussed strengthening cooperative ties in multiple areas.
(KNN Bureau)
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