Maldives and India: Strengthening Economic and Diplomatic Relations

Recent announcements indicate that India and the Maldives are in negotiations for a Free Trade Agreement and an investment treaty, as confirmed by Foreign Secretary Vikram Misri. These discussions aim to fortify the economic partnership between the two nations, with an emphasis on renewable energy and fisheries. India is a major economic partner for the Maldives, with bilateral trade volume around USD 500 million. India’s investments include significant contributions to the tourism industry. India’s support extends to development through lines of credit and grants, notably the Greater Male Connectivity Project. Financial support, including currency swaps and treasury bill subscriptions from the State Bank of India, reflects the strong financial ties. Cooperation in defense, security, and capacity building is also prominent. The forthcoming visit of Prime Minister Modi is expected to fortify existing relationships. The visit is particularly significant as the two nations commemorate the 60th anniversary of the establishment of diplomatic ties.