Negotiations on the India-Maldives Free Trade Agreement (IMFTA) are progressing steadily, according to the Indian High Commission in the Maldives.

The High Commission said technical teams from both countries are working to improve market access and deepen economic ties, with the agreement expected to create additional commercial opportunities.

The Ministry of Economic Development and Trade said the proposed agreement is focused on reducing trade barriers and improving conditions for bilateral investment.

The first formal round of negotiations, held from June 29 to July 7, included eight technical sessions covering eight sectors.

India’s delegation was led by Joint Secretary at the Department of Commerce Ujjwal Kumar Ghosh, while Maldives’ team was headed by Chief Negotiator Yoosuf Riza.

Indian Commerce and Industry Minister Piyush Goyal and Maldivian Economic Development and Trade Minister Mohamed Saeed reviewed the negotiations on July 8.

India is currently the Maldives’ second-largest trading partner.

Bilateral trade reached USD 771.76 million in 2025-26, up 13.54 percent from the previous year. Indian exports totaled USD 458.71 million, while Maldivian exports to India stood at USD 313 million.

Minister Saeed has previously said the government hopes to complete the agreement by the end of this year.

Work is also ongoing on introducing India’s Unified Payments Interface (UPI) in the Maldives and concluding a Bilateral Investment Treaty.

The decision to pursue the FTA followed President Dr. Mohamed Muizzu’s 2024 state visit to India, with the agreement’s Terms of Reference signed in March.

The Economic Ministry said the deal could expand opportunities for Maldivian businesses, particularly in digital services, software, fisheries and the creative sector.

The government is also working to list more than 400 local businesses on international platforms through the Authentic Maldives initiative.