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Maldives-India discussing FTA ahead of Modi’s visit

Maldivian President Dr. Mohamed Muizzu (R) and Indian Prime Minister Narendra Modi (L) meet at the Hyderabad House in New Delhi, India, on October 7, 2024. (Photo/President's Office)

The government of India, on Tuesday, has revealed that the governments of Maldives and India are discussing entering into a Free Trade Agreement (FTA) ahead of Prime Minister Narendra Modi’s upcoming visit to the Maldives in conjunction with the nation’s 60th independence anniversary.

Modi is scheduled to visit Maldives from July 25th to July 26th at the invitation of Maldivian President Dr. Mohamed Muizzu.

Speaking with the country's press on Tuesday, India’s Foreign Secretary Vikram Misri confirmed that the governments of Maldives and India are in discussion to negotiate an FTA and an investment treaty.

Misri further said both countries are also discussing new areas of cooperation, including in renewable energy.

India’s External Affairs Ministry has confirmed that Modi will be the guest of honor during Maldives’ Independence Day celebrations.

Maldivian Economic Minister Saeed announced that the Maldives proposed forming an FTA with India on May 25, 2024. However, on May 31, the Indian government stated that no such proposal had been received, but added that it would consider the matter if a request were made.

In February of this year, Saeed stated that President Muizzu and Indian Prime Minister Narendra Modi had expressed interest in signing an FTA during President Muizzu’s state visit to India in October 2023. He noted that both countries were expected to soon conclude negotiations on the terms of the agreement.

Saeed also emphasized that President Muizzu is eager to establish trade agreements with major global markets and assured that any such deals would be designed to benefit the Maldivian people.

He highlighted on the preferential trade agreement signed with Turkiye in November last year, and the FTA with China which took effect at the start of this year.

The opposition has argued that the FTA with China has failed to deliver positive outcomes, claiming it is the reason for the decline in import duty revenue collected by the state this year. However, the government has rejected this correlation.

Elected to office on a pledge to expel Indian troops from the Maldives, relations between Male’ and New Delhi had been strained in the early days of President Muizzu’s administration.

Things escalated further three months into office when three deputy ministers made disparaging remarks regarding India and Indian Prime Minister Modi following a social media post promoting India’s Lakshadweep as an alternative tourist destination to the Maldives.

Speaking to reporters after concluding a state visit to China the same month, President Muizzu said that Maldives wasn’t any country’s backyard and that the country cannot be bullied just because its small – remarks that were widely believed to be directed at India.

But despite the earlier turmoil, officials from both Male’ and Delhi repeatedly expressed keenness to repairing relations, and engaged in several high-level visits, including two by President Muizzu himself.

The upcoming visit by Modi, which will mark his third visit to the Maldives but his first during President Muizzu’s administration, is expected to further cement the ties between Male’ and New Delhi.

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