India and the Maldives have initiated discussions on a potential free trade agreement, as confirmed by Indian Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu during a joint press address following bilateral and delegation-level talks in New Delhi. While specific details regarding the proposed trade agreement were not disclosed, Prime Minister Modi emphasized the importance of strengthening economic ties between the two nations. “We have begun discussions on a free trade agreement to enhance our economic relationship,” Modi said.
During the visit, the RuPay card was officially launched in the Maldives, marking a significant step in financial connectivity between the two countries. Additionally, plans were announced to integrate India and the Maldives with the Unified Payments Interface (UPI) in the near future, continuing India’s efforts to expand the benefits of its digital payments infrastructure to other nations. The leaders also explored the possibility of opening a new consulate in Bengaluru to further strengthen diplomatic and business ties. President Muizzu highlighted India’s role as a key partner in the development of the Maldives, expressing gratitude for India’s ongoing support in various sectors, including infrastructure.
“We look forward to concluding a free trade agreement that will unlock the full economic potential between our countries and attract further Indian investments, particularly in tourism and other development sectors,” President Muizzu stated. He reaffirmed the strong partnership between the two nations, noting that India has consistently supported the Maldives in times of need. President Muizzu also presented Prime Minister Modi with an invitation to visit the Maldives next year. Both leaders signed a “Vision for Comprehensive Economic and Maritime Security Partnership,” which aims to enhance cooperation in areas such as trade, development, digital initiatives, energy, health, and maritime security.
President Muizzu’s five-day state visit to India is his first bilateral visit following his earlier trip to attend Prime Minister Modi’s swearing-in ceremony in June 2024. During his stay, Muizzu is also scheduled to visit Mumbai and Bengaluru, where he will participate in business events. The Maldives remains a key maritime partner for India in the Indian Ocean Region, and this visit underscores the continued importance of the bilateral relationship, contributing to stronger cooperation and enhanced people-to-people ties.
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