India, Maldives conclude BIT talks; accelerate FTA negotiations
India and the Maldives have concluded negotiations for a bilateral investment treaty (BIT), and the text is undergoing legal scrubbing before the deal is signed. The two countries are also accelerating negotiations for a proposed free trade agreement (FTA) to further strengthen economic ties. The developments followed bilateral talks between Maldives' Minister of Economic Development, Transport and Trade, Mohamed Saeed, and India's Minister of Commerce and Industry, Piyush Goyal, during Minister Saeed's official visit to India.
In a trade agreement, two countries either significantly reduce or eliminate import duties on a wide range of goods traded between them, thereby facilitating greater trade. Both sides have reaffirmed their commitment to expediting the signing of the treaty and the proposed Free Trade Agreement (FTA). The two ministers also discussed ways to deepen cooperation in sectors including tourism, startups, digital payments and MSMEs.
A BIT is designed to promote and protect investments in each other's countries. India has recently implemented similar agreements with countries like Israel and the United Arab Emirates (UAE). The India-Maldives agreement is expected to pave the way for increased bilateral investments between the two countries. Between April 2000 and March 2026, India received foreign direct investment (FDI) worth $12.65 million from the Maldives. Meanwhile, bilateral trade between India and the Maldives increased 13.5% year-on-year to $771.76 million in FY26, comprising exports of $458.71 million and imports of about $313 million, compared with $690 million in FY25.
