India and the Maldives on Friday formally announced an agreement to launch negotiations on a free trade agreement (FTA) for which preliminary discussions have already begun.
The announcement was made during Prime Minister Narendra Modi’s visit to the Maldives. India is hopeful of wrapping up the FTA soon, given the speed at which consensus was built on the terms of reference.
"I cannot point to an exact timeline, but my understanding from discussions with my commerce ministry colleagues is that this is an FTA that we should be able to conclude rather quickly. Today’s agreement reflects an understanding on the terms of reference, which usually takes more time. These have been agreed, and now it remains for offers to be exchanged and discussed," foreign secretary Vikram Misri said.
This is the Prime Minister’s third visit to the Maldives and the first during the administration of President Mohamed Muizzu, who was elected to office in September 2023 on an "India Out" campaign that personally targeted Modi.
Modi will be the chief guest at the Maldives’ 60th Independence Day celebrations, marking a major turnaround from the Muizzu dispensation’s initial months of hostilities towards India. Matters had come to a head in early 2024 when some junior Maldivian ministers made derogatory remarks against Modi, leading to a "boycott Maldives" campaign in India.
Since then, both countries have worked to reset ties.