India and the Maldives have concluded negotiations for a bilateral investment treaty (BIT) and are now working to finalize the legal formalities required for signing, as announced by Maldives Minister of Economic Development, Transport and Trade Mohamed Saeed during his official visit to India. Minister Saeed confirmed that work is currently underway to finalize the necessary legal reviews and documentation for the investment agreement, following high-level ministerial discussions with India's Commerce and Industry Minister Piyush Goyal. The BIT negotiations have been completed, with both nations now focusing on the final legal scrubbing process before the formal signing ceremony. This development represents significant progress in the bilateral investment relationship between the two countries, with Minister Saeed stating "BIT is concluded. We are just seeing the legal scrubbing process" during the recent meeting.
India and the Maldives have concluded the round of negotiations for a free trade agreement (FTA) on July 7, marking significant progress in bilateral trade relations. As per PTI reports, both countries are now fast-tracking negotiations for the proposed free trade agreement (FTA) to boost bilateral trade and investments. Minister Saeed noted the rapid pace of discussions, stating "We have seen the fast, quick progress of FTA dialogue... both sides meet almost every day" during the recent meeting. The FTA is expected to significantly reduce or eliminate import duties on the maximum number of goods traded between the two countries, building upon the existing trade agreement signed in 1981 which provides for the export of essential commodities. According to recent reports, the Free Trade Agreement will significantly reduce or entirely eliminate customs duties and taxes on the import of goods between the two countries.
During the ministerial meeting, both sides discussed ways to enhance collaboration in tourism, startups, digital payments, and MSMEs. According to PTI reports, Minister Saeed stated that the relationship between the two countries is set to receive another fillip with the signing of both agreements. The BIT is expected to pave the way for increased bilateral investments between the two countries, with both ministers reaffirming their commitment to expediting the signing of the treaty and the proposed Free Trade Agreement. The agreements are specifically designed to unlock new opportunities across multiple sectors including tourism, entrepreneurship, digital infrastructure, and small and medium enterprise development. Minister Goyal emphasized that the relationship between the people and the businesses of the two countries is soon going to get another fillip with the signing of both agreements.
Bilateral trade between India and the Maldives rose 13.5% to USD 771.76 million in 2025-26, compared to USD 690 million in 2024-25. As reported by PTI, India received USD 12.65 million in foreign direct investment (FDI) from the Maldives during April 2000 and March 2026. India is the major trading partner of the Maldives, with Indian imports from the Maldives primarily comprising scrap metals, while exports include a variety of engineering and industrial products like drugs and pharmaceuticals, radar apparatus, rock boulders, aggregates, cement, and agricultural products including rice, spices, fruits, vegetables and poultry produce. The trade figures comprise ₹458.71 million in exports from India to the Maldives and ₹313 million in imports from the Maldives to India. India and the Maldives signed a trade agreement in 1981, which provides for the export of essential commodities.
