India, Maldives In Talks For Free Trade Agreement & Investment Treaty: Foreign Secy

(MENAFN- KNN India) New Delhi, July 23 (KNN) India and the Maldives are currently in talks to negotiate a Free Trade Agreement (FTA) and an investment treaty, Foreign Secretary Vikram Misri announced on Tuesday, ahead of Prime Minister Modi's visit to the Maldives on July 25–26.

PM Modi is scheduled to visit the United Kingdom on July 23, following which he will travel to the Maldives as the guest of honour at the country's 60th Independence Day celebrations on July 26, at the invitation of President Mohamed Muizzu.

Highlighting expanding bilateral economic engagement, Misri said,“Both countries are in discussions to negotiate a free trade agreement and an investment treaty... New areas of cooperation, including renewable energy and fisheries, are also being explored.”

India's move to advance FTA talks comes in the backdrop of the Maldives implementing a free trade pact with China earlier this year.

While the Ministry of External Affairs had previously clarified that India had not initiated such talks, it had expressed openness to consider an FTA if the Maldives formally proposed it.

India is currently one of the largest trading partners of the Maldives, with bilateral trade touching nearly USD 500 million.

Indian businesses also have a significant presence in the Maldivian tourism sector and other economic domains, Misri noted.

Beyond trade, both sides are exploring the possibility of a local currency settlement system to facilitate smoother transactions.

In a bid to boost tourism and enhance digital connectivity, India and the Maldives are also discussing the introduction of India's Unified Payments Interface (UPI) in the island nation - a system already deployed in other international destinations.

“This could provide significant convenience to tourists... and help increase tourism numbers,” Misri said, adding that such initiatives will be formally taken up during the upcoming visit.

The talks signal a renewed effort to bolster economic ties amid shifting geopolitical dynamics in the Indian Ocean region, with India seeking to reinforce its strategic and commercial footprint in the Maldives.

(KNN Bureau)

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