India Clarifies No Offer Made For FTA With Maldives, Open To Future Discussions
Date
5/31/2024 2:23:58 PM
(MENAFN- KNN India) New Delhi, May 31 (KNN) Addressing media reports suggesting India had initiated efforts towards a Free Trade Agreement (FTA) with the Maldives, the Ministry of External Affairs (MEA) clarified that no such proposal has been made by New Delhi.
However, the official spokesperson indicated India's willingness to explore an FTA should the Maldivian government raise the matter.
"We have not made any offer for an India-Maldives FTA as has been reported based on remarks by the Maldivian Minister for Economic Development," stated MEA Spokesperson Randhir Jaiswal.
He explained, "That said, if the Maldives is indeed considering such a trade pact with India, we will certainly look into it."
The clarification follows statements last week by Mohamed Saeed, Maldives' Minister of Economic Development and Trade, who was quoted as saying India had taken the first step towards negotiating an FTA between the two countries.
Saeed had expressed the Maldivian government's intent to pursue FTAs with multiple nations to boost trade prospects.
Significantly, while India signed the SAARC Free Trade Agreement in 2004 which included the Maldives, the two countries currently have no separate bilateral trade agreement.
Official figures indicate India-Maldives bilateral trade reached nearly USD 1 billion in 2023-24, with Indian exports valued at USD 892 million against imports of USD 86.84 million.
The interest in exploring deeper trade ties holds relevance amid a period of strained diplomatic relations between the neighbours.
Ties were set back after Maldivian President Mohamed Muizzu insisted on the withdrawal of Indian military personnel from the archipelago upon taking office in November 2022.
However, earlier this month, India extended economic assistance by rolling over USD 50 million in budgetary aid for another year at the Maldives' request - a move welcomed by Maldives' Foreign Minister Moosa Zameer as a 'true gesture of goodwill' between the partners.
(KNN Bureau)
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