New Delhi: India and the Maldives on Monday began negotiations for a free trade agreement, the commerce department said.
The discussions are being conducted in virtual mode and are scheduled from June 29 to July 7, it said.
Follow The PSUWatch Channel on WhatsApp
"The Government of India has officially commenced the first round of negotiations for a bilateral Free Trade Agreement (FTA) with the Republic of Maldives," the department said in a social media post.
In a trade agreement, two countries either significantly reduce or eliminate import duties on the maximum number of goods traded between them.
The bilateral trade between the two countries rose 13.5 percent to USD 771.76 million (exports USD 458.71 million and imports USD 313 million) in 2025-26 from USD 690 million in 2024-25.
India is the major trading partner of the Maldives.
Follow PSU Watch on LinkedIN
Indian imports from the Maldives primarily comprise 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 like rice, spices, fruits, vegetables and poultry produce.
India and the Maldives signed a trade agreement in 1981, which provides for the export of essential commodities.
(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)