Maldives and India have officially begun formal negotiations on a Free Trade Agreement (FTA), marking a significant step toward strengthening economic and trade relations between the two countries.

Minister of Economic Development, Transport and Trade Mohamed Saeed announced that the first round of negotiations took place on Monday.

The talks follow the signing of the Terms of Reference (TOR) in March, which established the framework and guiding principles for negotiating the agreement.

The decision to launch FTA negotiations was initially formalized during Indian Prime Minister Narendra Modi's official visit to the Maldives last year.

Speaking at a press conference held at the President's Office, Saeed said both countries are working toward concluding the agreement at the earliest opportunity.

The minister said the government has consistently pursued trade agreements that provide greater opportunities for Maldivian businesses and exporters.

He noted that such agreements allow local companies to benefit from preferential treatment, including reduced or eliminated import duties, making their products more competitive in foreign markets.

Saeed pointed to the Maldives-China Free Trade Agreement as an example, saying it has created new opportunities for Maldivian businesses, including access to international e-commerce platforms such as Alibaba.

According to the minister, the proposed agreement with India is expected to provide Maldivian businesses with access to one of the world's largest consumer markets, creating new opportunities for trade and investment.