The first round of negotiations for the India-Maldives Free Trade Agreement (FTA) concluded successfully on July 7, 2026. According to reports from Business Standard, the negotiations were conducted in virtual mode from June 29 to July 7, 2026. The successful completion of this initial round marks a significant step forward in bilateral trade relations between the two nations. As per the Ministry of Commerce and Industry, both sides reached broad convergence on several issues during the inaugural round. The negotiations covered eight policy areas with both countries making substantive progress across eight technical sessions.
India's negotiating team was led by Chief Negotiator Ujjwal Kumar Ghosh, Joint Secretary, Department of Commerce. The Maldives delegation was headed by its Chief Negotiator Yusuf Riza. The negotiations were reviewed on July 8 during a meeting between Union Commerce and Industry Minister Piyush Goyal and Maldives' Minister of Economic Development, Transport and Trade Mohamed Saeed. Both sides engaged in text-based discussions across eight technical sessions covering eight policy areas during the first round.
According to Business Standard reports, both negotiating teams made substantive progress across the negotiating tracks during the first round. The teams reached broad convergence on several issues during their discussions. This progress indicates that both countries are moving toward a comprehensive trade agreement framework. As per the Ministry of Commerce and Industry, both sides are working towards a broad-based, balanced and comprehensive agreement guided by the principles of fairness and reciprocity.
Marking 60 years of diplomatic relations, India and the Maldives reaffirmed their commitment to expedite negotiations on both the Free Trade Agreement and the Bilateral Investment Treaty (BIT). The ministers discussed ongoing bilateral economic initiatives and agreed to deepen cooperation in tourism, startups, digital payments, micro, small and medium enterprises (MSMEs) and trade to create new economic opportunities. India is the Maldives' second-largest trading partner, with bilateral trade standing at USD 771.76 million in 2025-26, up from USD 679.70 million in 2024-25, reflecting a growth of 13.54 per cent. Of the total trade, India's exports stood at USD 458.71 million while imports from the Maldives were valued at USD 313 million.
The proposed FTA is expected to further strengthen bilateral economic and trade relations by enhancing market access, facilitating investment, promoting greater economic cooperation and contributing to sustainable economic growth in both countries. The government emphasized that both sides are working towards a comprehensive agreement that will enhance bilateral trade relations and provide mutual benefits in the long term. As per Business Standard, the proposed FTA is expected to improve market access, facilitate investment flows and strengthen economic cooperation between the two countries.
