No specific FTA proposal with Maldives but...: WATCH what India said about deal with Muizzu govt

India, on Thursday, said it has not received any “specific proposal” for a bilateral Free Trade Agreement (FTA) with the Maldives, but will “give it a due consideration” if the government of the island nation expresses interest.

“No specific proposal for a bilateral FTA with the Maldives has been made by the Government of India. If the Government of Maldives expresses interest in having an FTA with India, we will give it due consideration,” Randhir Jaiswal, spokesperson of the Ministry of External (MEA) said at a weekly media briefing on Wednesday in New Delhi.

#WATCH | Delhi: On Maldives FTA, MEA spokesperson Randhir Jaiswal says, "No specific proposal for a bilateral FTA with the Maldives has been made by the Government of India. If the Government of Maldives expresses interest in having an FTA with India, we will give it due… pic.twitter.com/9FBwZKfeqE

— ANI (@ANI) May 30, 2024

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A report by PTI mentioned that Maldives’ Minister of Economic Development and Trade, Mohamed Saeed, on Saturday (May 25) told at a press conference in Male that India has initiated efforts to create a FTA between the two countries and deliberations are underway for achieving it.

“They (India) want there to be a Free Trade Agreement with (the) Maldives, in addition to SAFTA (South Asian Free Trade Agreement),” Mohamed Saeed said.

The minister also said the Maldives President Mohamed Muizzu has offered the opportunity to all countries for a free trade deal with the island nation, adding that his government aims to enter into agreements with as many countries as possible to provide ease in trade activities.

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The Maldives minister’s statement of India seeking an FTA with the island nation comes amid strained diplomatic ties between the two countries since November 2023 after Muizzu, known for his pro-China learnings, took the oath as the president of the archipelago.

Hours after taken oath, Muizzu demanded the withdrawal of Indian military personnel from his country. The last of the Indian military personnel were replaced by civilians on May 10 this year.

1981 India-Maldives trade agreement

India and Maldives have trade agreement since 1981 which facilitates export of essential commodities. As per PTI, the Indian High Commission record showed, that bilateral trade between India and Maldives surpassed $300 million for the first time in 2021 and further exceeded $500 million the following year.

Despite the diplomatic row, India, in a goodwill gesture, in the month of May this year announced to extend vital budgetary support to the Maldives government with the rollover of a $50 million Treasury Bill for another year on the Maldivian government’s special request.