Tue Feb 11 17:15:13 UTC 2025: ## Maldives to Finalize Trade Pact with India Despite Concerns from New Delhi

**Male, Maldives –** The Maldives is poised to finalize a free trade agreement (FTA) with India, according to Maldivian Minister of Economic Development and Trade Mohamed Saeed. This announcement comes just weeks after India expressed concerns about potential revenue losses for the Maldives resulting from similar deals with other nations, particularly China.

Saeed confirmed the upcoming FTA in a recent television interview, stating that President Mohamed Muizzu and Indian Prime Minister Narendra Modi had expressed strong interest during Muizzu’s October 2024 visit to India. Negotiations are expected to commence shortly.

India’s concerns were voiced by Ministry of External Affairs spokesperson Randhir Jaiswal in late January, who noted that agreements potentially leading to Maldivian revenue losses were a cause for concern regarding the country’s long-term fiscal stability. While Jaiswal did not explicitly name China, his statement implied that India’s policy toward the Maldives would be adjusted accordingly.

Saeed countered these concerns, arguing that the FTA will boost Maldivian exports and reduce reliance on imports. The Maldives is currently grappling with a foreign currency crisis, facing low reserves and high public debt, as highlighted by the World Bank in October 2024. The Maldives recently signed a preferential trade agreement with Turkey and finalized an FTA with China, which grants zero tariffs on most Maldivian aquatic products exported to the country. The upcoming FTA with India is viewed by the Maldivian government as crucial for economic diversification and stability.

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