India, Maldives conclude first round of FTA talks

• The first round of negotiations for the India-Maldives Free Trade Agreement (FTA) concluded successfully. 

• The negotiations were held in virtual mode from June 19 to July 7.

• The negotiating teams from both sides engaged in text-based discussions across eight technical sessions covering eight policy areas. 

• Both sides made substantive progress across the negotiating tracks and reached broad convergence on several issues.

• As India and the Maldives commemorate 60 years of diplomatic relations, both sides reaffirmed their commitment to expedite the conclusion of the Bilateral Investment Treaty (BIT) and the FTA. 

• They also agreed to further deepen cooperation in tourism, startups, digital payments, MSMEs and trade to unlock new opportunities for both countries.

• India is the second-largest trading partner of the Maldives. 

• Bilateral trade between the two countries stood at $771.76 million in 2025-26, compared to $679.70 million in 2024-25, registering a growth of 13.54 per cent.

• 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. 

• Both sides are working towards a broad-based, balanced and comprehensive agreement guided by the principles of fairness and reciprocity.

What is Free Trade Agreement?

• A Free trade Agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics.

• Bilateral trade agreements occur when two countries agree to unshackle trade restrictions to expand business opportunities.

• Plurilateral agreements occur between a large number of countries, either in the regional context or otherwise.

• Multilateral trade agreements are generally referred to for World Trade Organisation (WTO) negotiations since it covers a large number of countries and sets global trade rules.